Simple Success

Simple Success 

 

Is there such a thing? 

Yes, and we want you to succeed. Even the most profitable business can have cash flow problems, but there are some simple tactics which may help you stay afloat if you act early. 

 

1. Do the Hokey Cokey -” When you put £2 in, you take £1 out, in, out, in, out, you shake it all about”. 

On a serious note, always have more cash coming in than going out each month and consider accounting software if you are struggling to manage income and expenditure. 

 

2. Cut Costs - Identify your core functions and then tackle the other areas that could be reduced or cut. Look at salaries, equipment, marketing, premises, stock etc. This won’t be easy, but saving a little bit each month from where you can, all adds up. 

 

3. Manage debts – Never bury your head in the sand thinking its just a blip. Pay off debts with high interest as a priority and negotiate with any creditors as soon as possible, they are more likely to be flexible and offer you breathing space. 

 

4. Prompt Invoicing – Stay on top of invoicing and chase up any overdue payments. Consider offering incentives for prompt payment. 

 

5. Formal business model – This may be obvious, but having a simple plan which is regularly updated will help, early detection of any anomalies, and long-term budgeting/forecasting. Knowing what plan to implement and having access to an emergency fund if you hit tough times may just be all that is needed to prevent crisis. 

 

6. Professional advice – There is no shame in asking for help. 

At Smith & Barnes we have a wealth of knowledge and experience and work with you to minimise any anxieties and concerns. We offer a free, no obligation consultation, so let us find the best outcomes for you and your business.