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Manufacturing Business

Working Capital Challenges Faced by Manufacturers

Manufacture is someone or an industry that deals with the production of products for sale or use. They deal with the processing of raw materials into finished goods ready for sale or use.

Why manufacturers face working capital challenges?

A company may have a healthy asset position and profitable but still face liquidity challenges due to insufficient working capital. Working capital is the short-term assets available in a business that enables it to meet its financial obligations. The shortfall of working capital in most scenarios happens because, often, manufacturers are obliged to meet supplier and production expenses before goods being manufactured products are sold.

How do manufacturers deal with working capital challenges?

The working capital term sounds easy to understand, you need to divide total current assets by total current liabilities then you get the ratio you can use to derive your ability to pay the short-term debt. Working capital is no rocket science; it only shows how liquid a company is at any given time. Many manufacturing companies turn to asset financing and asset-based lending with the core aim to alleviate the delayed timing during the lead times of resource-intensive goods manufacturing process and the time when the goods are sold out. Even when the finished products are sold, it is not a guarantee that the cash will be available because some customers take goods on credit and there is nothing you can do about and they will pay you months later, these customers unaware courses cash flow shortfalls in the business.

To deal with working capital challenges, companies turn to internal and foreign financiers to keep their immediate expenditure afloat. Internal lenders include local banks, foreign financial companies willing to invest their monies sees opportunity in the manufacturing industry because it is not uncommon to find customers and distributors taking manufactured products and taking ling time before settling their debts. Relatives living abroad, for example, may want to invest in the manufacturing industry and innocent of how to wire funding without extra exorbitant transfer charges from other countries. Funds transfer shouldn’t be a problem here. A person who wishes to participate in financial agreements between manufactures should be willing to transfer finances through XE Money Transfer or any other money transfer agency available.

Strategies for managing working capital

Checks and balances exist handy in managing the working capital of a manufacturing company. Vital is to ask the customers to pay promptly for the products and if they must take them on loan basis, should adhere to rules and regulations, important of them all is to be faithful to the manufactures and honour their efforts.

Optimize inventory by balancing supply and demand which is the rule of business in today’s world. It means having the right amount of finished products that can address customer’s needs and not a penny more for what is needed.

To silver line cash to cash cycle and sometimes to inventory, the art to strike a balance between the two because more often than not when you solve one of the challenges, the other is halfway solved.…

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Manufacturing Business

Facebook Marketing Strategies to Follow

Facebook Marketing

With regards to social media marketing, there is no greater tool to use than Facebook. Facebook marketing is by far the best method to reach as many people as possible and make your business grow. Not only that, it will help you to build your brand and make online business seem trustworthy. Then the article below will teach you all you need to know about Facebook marketing.

Goal is Number One

Set some goals for your Facebook marketing campaign. You can launch your campaign on a trial basis if you are not sure how your audience will react to it. Once you get a better idea of how interested your customers are, you should set some reasonable goals for your campaign.

Own a Unique Facebook Page

Create a unique Facebook page that is capable of standing apart from the rest. The key to marketing on Facebook is to not look just like the other guys. Almost everyone uses Facebook these days, so you must be different if you want to be noticed before one of your competitors is.

Try to Reach Out more People

Reach out to the friends of your subscribers by encouraging them to share your content. You could for instance ask subscribers to share your updates to receive a coupon code or focus on sharing entertaining content your subscribers will want to send to their friends. Keep track of which strategies work best.

Mobile Friendly News Feed

By using the Power Editor, you can get your marketing post into mobile user’s news feed, the best way to reach those who aren’t using a traditional computer to access Facebook. In fact, there are also “Desktop News Feeds” which go to those on computers as well, so you can target both.

Theme is Necessary to Think about

Give your Facebook page a really strong theme. Know what your about and deliver it in the graphical look of your page. Remember, you have one chance at making an excellent first impression on your new Facebook guests. To turn them into real fans, you’ve got to deliver from the first page load.

Pay Attention to the Profile Picture and Cover Picture

Facebook allows you to have both a profile picture and a cover picture. Make sure that both of these have something to do with your business. In addition, do not make the pictures too complex or flashy. You want them to be easily identifiable to your target market. If they are not, someone could be confused about what your page is really about.

Be Communicative

When someone makes an effort to write you a question or even to just say something positive about your company, make sure you respond. It helps to create good will, and it says a lot about you as a business owner. New customers and potential customers will be impressed with how responsive you are.

Ask questions on your Facebook page. In order to learn more about your audience and what they like and don’t like, ask questions to get them talking. Encourage them to answer, and you can even be part of the conversation, too. The more you can get your fans to talk, the better.

Having read the article above, you should now have a better understanding as to how Facebook marketing works. Use the advice detailed earlier as you take steps to expand your business and reach more people than ever before. Remember to refer back to this article periodically to refresh everything you have just learned.…