Ever felt like your start-up’s cash flow is playing hide and seek when you need it most? Wish you had a little bit of guidance through the panic and worries? Cash flow issues are one of the biggest challenges by far for young entrepreneurs and business owners alike. But they don’t have to be a complete buzzkill! Here are our essential pointers on keeping afloat when the cash troubles are coming in thick and fast.
Why Cash Flow is the Lifeblood of Your Business
Cash flow is like the nectar that keeps a bee buzzing – without it, your hive is truly at risk. Without business, there’s no cash flow, and without cash flow there is no business. So how on earth do you even keep a business going? Even profitable business can fail if the money isn’t coming in at the right time.
Practical Tips to Keep Cash Flow Healthy
Tip 1: Forecast Like A Fortune Teller
You need to be planning ahead for at least 3 months, and in an ideal world 6, but we understand how it gets. Predict upcoming expenses, income streams and big sales or deals! Float is a fantastic free cash flow forecast resource for easy tracking.
Tip 2: Speed Up Payments Where Possible
Avoid late payments and get your money as soon as you can by rewarding early-paying clients with discounts or sending “sweet” (but firm) reminders. Don’t let your invoices age like vintage wine!
Tip 3: Manage Expenses With A Magnifying Glass
This is a huge one. Cutting unnecessary expenses or automating time-consuming processes will take a huge financial load off your back in the long-run. There are great apps out there like Pleo that will make expense management an absolute breeze.
Tip 4: Call In The Pros When You Need Help!
Sometimes, you need a hive-mate who knows their numbers. The accountants at Bryden Johnson can help you navigate cash flow chaos. Here’s one of our recent slideshows to explain the importance of a good accountant for young business owners:
Cash flow might seem dull, but it’s the pulse that keeps your business alive. When it’s steady, everything hums along smoothly. Without it, even the best ideas can grind to a halt.
The good news? You can manage it.
Plan ahead, stay alert, and your hive will keep buzzing, no matter how tight things get.
