No business can operate without money coming through the bank account in a timely manner yet cash flow problems are still ranked #1 as the biggest problem facing the vast majority of businesses. Sales are pretty good but getting the money in is the hard part. Many businesses have problems with cash flow – its just a fact of life at times but it is very distracting.
If you are spending too much of your time juggling funds you have probably got a cash flow problem and this can be very distracting. All of a sudden the vast majority of your energy is spent chasing money rather than making money.
We all need to take control of our cash flow, perhaps it means being more careful and specific about your trading terms. Perhaps it is having someone else to control this side of the business so that you can get on with making money. Perhaps your debts need to be restructured or reorganised or you may need an overdraft to smooth out the cash flow position.
Whatever situation you are in, if you are constantly waiting to get paid so that you can pay bills – you need to do something about it. Start with your accountant – they should be able to give you some good advice. You may need to hire the services of a credit controller whose main job is to make sure that your money is flowing in rather than dribbling in, but you certainly need to address the situation.
Magnificent businesses need the undivided attention of the business owner and entrepreneur to grow and if their time is being used to chase debts the business will never be able to reach its full potential.
There are lots of places to get advice on improving cash flow, the best place to start is with your accountant or your bank. There are good books, courses that you can do, friends to talk to etc. Whatever you do, do it today.