Cashflow is one of the main points of stress for SME business owners, and a common reason for business failure.
Some sources say as many as 50,000 UK businesses a year fail due to cashflow challenges, while another survey found 57% of businesses have cashflow problems.
Why is managing your cashflow important?
Would you agree that time and money are often your top two pressure points as a business owner? Not enough time and money to achieve what you want in your business or have the work-life balance you want.
Operating cash is the lifeblood of your business.
It is not just about what money is coming in to and out of your business, but also when those two things are happening. Your business may be profitable at the end of each month, but that doesn’t mean there aren’t pinch points, moments of stress or perhaps even the need to dip into your savings to get yourself through to month end.
You can better manage your cashflow to avoid the stress of this, avoid the potential embarrassment of not being able to pay suppliers timely and avoid putting yourself at financial risk.
Why is managing cashflow often difficult for businesses?
It is often difficult for SME business owners to manage cashflow, for the simple reason that it is not consistently tracked.
So let us ask you:
Do you have a cashflow forecast?
How often do you update it?
Do you regularly analyse, and act based on what you find?
Managing cashflow in your business is not in of itself difficult, it only becomes so when you don’t know where you are at with it or know what is coming up next – once you’ve lost control or are unaware, getting it back takes some time.
Download a free guide to help you out!
When financial controls are such a vital part of running and growing a business, yet something few business owners have training in, the team at UK Growth Coach have created a guide to improving cashflow management with our 5 top tips. Covering everything from debtor processes through to analysing trends and how you choose your clients.
Simply download here: https://tr.growthcoach.co.uk/business-coaching-for-growth-programme/#download
If you’d like to discuss anything from the guide, about financial controls or indeed any other part of your business, do get in touch on connect@growthcoach.co.uk or call 01444 440500.