Things don’t always go right in business. That’s just the reality of being a business owner – you can be the best business owner in the world and things can still go wrong. The coronavirus pandemic is a prime example of this.
But what about when things don’t go wrong on a massive scale? What do you do when cash flow is just starting to get out of hand with your cash flow?
Well first of all – don’t panic. It’s common and most of the time, if the business owner is smart, they develop a strategy for getting the business out of it.
But the substance of that strategy is incredibly important.
Our advice to business owners who have just started to see their cash flow headed in the wrong direction is to review where the cash flow slippage is.
Three key areas to watch in this situation are:
1) Is your invoicing happening quickly enough?
2) Are your debtors blowing out?
3) Have you lost customers without adjusting your cost structure?
You need to identify the problem quickly so you can come up with a plan to solve it. There maybe a quick easy fix or you may need to get some external help to get to the bottom of what’s going on.
If you do this, chances are you’ll be putting your business in a much better position to get back to where your budget was.