What are the Risks in Growing Your Business? (1 of 5)
Growing your business is exciting and can be very rewarding in terms of finance and satisfaction, however it doesn’t come without risks and in this series of posts I want to highlight the risks which can put your business in danger and how you can overcome them.
Running out of Cash
‘Cash is King’ and without sufficient cash (real money) to pay suppliers, employees and taxes even profitable businesses with growing sales have ceased trading because of poor cash flow. Remedies:
- Closely monitor your actual cash flow in comparison to your budget
- Ensure customers understand your Terms & Conditions and stick to them
- Operate a pro-active credit control system
- Raise & send invoices as soon as possible in line with your T&C’s
- Chase any invoices as soon as they become overdue
- Do what you say you will do at all stages – Don’t threaten and then not follow through
- Consider using a debt collection agency
- Consider factoring your invoices
Contact Paul for more information on managing your business
The Author – Paul Clayton MISM – Helping Successful Businesses Create More Success
I work with successful SME business owners and Directors who want to increase their success. As a business management & Training consultant I specialise in Sales, Business Development & Customer Experience – putting your customers at the heart of your business with planned, positive action taken to continuously improve your People, Processes & Profits.
If you would value a no obligation review of your business to identify the opportunities and challenges that you can react to, and benefit from, then contact me and take the next step on your way to achieve your success.