Cash flow is the lifeblood of any service station. It’s what keeps fuel in the tanks, shelves stocked, and wages paid. Yet, many owners focus heavily on revenue while overlooking the importance of consistent and controlled cash flow.

Why cash flow matters
Strong cash flow allows you to manage day-to-day expenses, invest in improvements, and weather unexpected costs like equipment breakdowns or fuel price spikes. Without it, even a profitable service station can struggle to stay afloat.

Common cash flow pitfalls
Relying too heavily on credit accounts, over-ordering stock, or failing to forecast slow periods can drain your cash reserves. Seasonal lulls, such as post-holiday downturns or wet weeks, can hit hard without a buffer in place.

Practical tips to improve cash flow
Start by monitoring your inflows and outflows regularly. A simple weekly cash flow report can highlight trends before they become issues. Negotiate better payment terms with suppliers where possible and be mindful of overstocking slower-moving items.

Consider offering small incentives for early customer payments if you extend credit, and stay on top of outstanding invoices. Lastly, review recurring expenses like utilities and EFTPOS fees. Many service stations have unlocked thousands in savings simply by reviewing these with an expert – that’s us!

The takeaway
Managing cash flow isn’t about penny-pinching. It’s about building a sustainable, resilient business. By staying proactive and informed, you’ll not only avoid cash shortfalls, but also position your service station to grow.

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