Does your business need more cash?
Or does it? Are you sure it doesn’t already have enough?
There are numerous options for raising cash for your business; making sense of the multitude of grants and borrowing options, and getting your hands on them, is best left to the experts. My experience however is that an awful lot of businesses fail to recognise that they already have some or all of the cash they need, they just don’t see where it is.
That is why an operational review can be so valuable, it can identify where cash is being held in “the system”; and you might be surprised how much there is. A few very simple ratios are all it takes to identify the opportunities, and there are some very simple approaches that can release significant amounts. Worst of all, if your business is not truly effective in turning orders into cash, then injecting even more cash will likely lead to bigger inefficiencies.
So, however good your strategy, however successful your marketing and sales activities, however good your people, and however “profitable” you may be, remember, you could still go bust without cash. That is why your processes should all focus on three key stages;
Get it in.
Get it through,
Get it out
Some questions to get you thinking:
Do you have a quality management system?
Does it improve cash flow?
Do all your invoices go out on time and without errors?
Do you have no customers who use invoice queries to delay payments?
Now what did you say about a quality management system?
So, before you go cap in hand to your bank, why not take the opportunity to find out if you really need to?
“Karen’s coaching sessions have been gold dust for me. We are working on setting up my own business, making progress where I would normally have stumbled and stalled. I wanted her to help me with action planning, which she has, and so much more. She has supported me by pinning these actions to beliefs and values and has gently challenged my thinking and championed my achievements, creating long lasting change and progress. I cannot put a value on the work we are doing together. Karen coaches with kindness and intelligent clarity, a wonderful resource for anyone setting up their own business, or wanting more out of their choices. It is the best investment I could have made.”
Lucy Hare, Musician