Planning is the key for successful businesses. Without an adequate plan, you will fall into unforeseen traps and problems that are easily preventable. Most business problems can be traced to a lack of communication, missing documents, or overlooking recurring events.

Since the success of any business depends on cash flow, supply chain management and support groups, management must maintain efficient operations in each of these areas. For example, cash flow can be interrupted when an unexpected bill comes due. The reason for the error is a lack of communication, a missing document, or carelessly overlooking the due date.

Cash flow

In planning cash flow, you should make a note of the amount and due date of every bill. You should also make certain that the cash to pay the bill is available so that you are not assessed penalties or late charges.

Planning for taxes

With cash flow coming in and out, organization is key as every business must pay taxes. Amounts and due dates are always known in advance, providing plenty of time to make proper accommodations. Finding help for your business taxes should be a top priority. You should examine the forms to be certain that you have all of the information needed to complete the form. If you have questions, you should call your tax preparer for help. Time and expenses can be saved when the work is done correctly.

Cash discounts on purchases

You should always take advantage of any cash discounts on purchases. Reducing the cost of goods adds to your profit. Missing a cash discount is due to overlooking recurring events or missing documents. One discount may not seem like much, but will add up over a period of time.

Notes payable

You can save a lot of interest expense by paying notes payable early. Be certain that you do not have an early-payment penalty clause in your contract. When feasible, you should begin planning to pay notes payable as early as possible.

Cash back credit cards

When possible, you should use business credit cards that pay cash back for smaller purchases. Cards offered by reputable companies have great rewards and cash back opportunities that all businesses, large or small, should look into. Using a card for appropriate purchases and the right times are great ways to build credit and provide long term value.


An error of communication in the supply chain may result in shipments of wrong sizes, colors, quantities or other errors. These errors may be avoided by taking the extra time to verify each detail of the order. In the long term, the extra man hours at this juncture will save even more time and money down the road.

Reorder point overlooked

Software programs are normally automated to signal when an item should be reordered. However, when customers discover that the item they wish is on back order or simply not available, they may cancel the order.


There are many ways that businesses can increase their profits by increasing efficiency. Effective planning of cash flow and supply chain management is the key to running successful business operations. Identifying and addressing the smaller details in business operations sooner rather than later will reap its rewards and then some.