I’ve read lots of stories in the press recently about small businesses struggling with cash flow issues, which, unfortunately in some cases, have led to them going broke. Continue reading for more information on improving cashflow in your business.
Cash flow is the lifeblood of any small business. Having more money coming in to your business than going out is the ultimate aim for all business owners however, as a business owner myself I know it’s often not quite as easy as it sounds!
The first few months of the year can be a particularly tricky period for many small businesses as you don’t just have the usual tax and super obligations but January and February can be slower business months and you may have some bigger bills to pay off depending on what you have spent at Christmas.
If you’re struggling to keep your head above water at the moment, don’t panic! However, it is important not to ignore it and just hope it will fix itself. It won’t! You need to take some positive action now.
Improving Cashflow Tips
Make a list of the payments that you need to make including rent, power bills, wages, suppliers and BAS (business activity statements) and prioritise them. Then negotiate longer payment terms on a payment plan. Most suppliers will be happy to accept a payment plan and the sooner you talk to them the easier it will be.
The last thing you want is for things to get ‘out of hand’ and you end up with a judgement against you. The lasting implications of a bad credit rating would be far worse than having a few ‘difficult’ conversations with your creditors.
To help you avoid cash flow issues in the future there are a number of simple strategies that I recommend for all of my clients. These include:
If you take control of cash flow issues sooner rather than later you’ll find yourself less stressed and able to focus on building on your successes and growing your business.
Interested in learning more?
Want to learn more about how to go about improving cashflow or for specific advice related to your business? Get in touch with our business advisory services team on (07) 3391 1188 or email us on firstname.lastname@example.org for cash flow improvement strategies today!