Cash Flow or Bust!

Running a business can be a very rewarding venture, the idea that you are your own boss can be an intoxicating one, especially alongside the many other great advantages and benefits of running a small or medium-sized business, but there is also a significant amount of dedication and hard work involved.

And one of the most crucial aspects of any successful business is money management or cash flow management.
From the initial business plan to the very first and last day of your business start-up, money will always play a large part in the day to day management of your company and could mean the difference between a successful and financially viable business to a complete failure.

Without a viable cash flow plan in place, you could find your business struggling from the get-go and will indeed be on its way to becoming bust.

But what exactly is cash flow?

Cash flow is the money or cash that comes in and out of your business monthly.
It can be made up of ‘hard cash’ or by electronic money, or even a combination of both depending on the type of industry the business is involved in, and how it handles any incoming or outgoing payments.

Why is cash flow so important?

To understand how important cash flow is to any business you need to look at the following questions;

· How is the business going to finance itself?

· Does the business have enough money to see it through any hardships that it may encounter?

· Will there be any staff to pay?

· Does the business require stock?

· Are there any overheads involved and how will they be paid?

· How will the company process payments?

· Will the business pay a living wage?

These questions, plus countless others, have one thing in common, they can all be answered in one form or another by cashflow management.

All the financial incomings and outgoings, on a daily, weekly, monthly and quarterly basis are managed within your cash flow. Without it, your company just could not run, and without an adequate cash flow plan, the same company will soon begin to run into debt and serious financial trouble.

What would happen if you couldn’t pay for your staff for one month? You could find yourself without the vital services of your employees or may need to find the money from elsewhere in your business. Or, what would happen if you didn’t correctly invoice the company to who you provided your services? You may find yourself out of pocket for the job and be unable to pay for a few business essentials one month.

These problems are severe but can be corrected easily if you act quickly enough, but continue to manage your cash flow poorly and these problems will soon mount up and you will find yourself unable to move from a financial sinking ship.

Let us help you create a more profitable & sustainable business.

Email: [email protected] now to arrange your complimentary FREE 30 minute Business Strategy Session, where we will help you identify at least 5 ways to solve your most painful problems & improve your business.