You can grow a company that delivers the best customer service, has good sales, and from the outside it appears as if you are extremely successful, but are you? If your business is constantly fighting for cash flow it is under duress and financial stress. Cash flow is the fuel of your business. If you are running on empty and starved for cash, you are in a survival mode and always looking for relief. This is the most difficult position for any business owner as it is frequently unclear as to which path to take to lead the company to fiscal stability.
“Cash is King.” Having cash creates security and allows you to sleep well. I continually tell my clients, “It’s always about the money,” and it surprises me that many business owners focus on everything but controlling and managing their cash flow.
The following strategies will help you control your cash and not your cash controlling you.
Cash Flow Plan: A cash flow plan is a projection for revenues and budget for expenses. Your plan which is a must, looks forward month by month into the future. Without a plan it’s like you are leading your company as if you were blind.
Live Your Plan: Diets work, fitness programs work and all these programs work if you are 100% committed and disciplined. Similar to these programs, you must commit to living your cash flow plan. if you don’t, you’ve compromised your financial stability and your leadership. Commit to changing today and see how quickly your business will emerge from financial starvation.
Share Your Numbers: Many fear sharing numbers for various reasons; misinterpretation, questionable expenses, but I am a believer people need to know where the numbers come from and the strategies that move numbers in the right direction. The more eyes, the more control you will have.
Financial Scoreboards: You can’t play the game, as business is a game, without a scoreboard. It tells you and your team if you are winning or losing. The 15th of every month you should be at 50% and to keep forging ahead – without the scoreboard, you don’t know where you are and could very well lose the game.
Make Tough Decisions: The difficult financial decisions will depend on how critical your cash flow is. Making adjustments to downsize the lifestyle of personal, cut back on marketing, fire non-essential employees, cut employee benefits, are bad ideas. If you don’t play hard, you will lose.
Stop Making Excuses: Work on what you must do and spend on what you must have. Many entrepreneurs are known for justifying almost anything or living in denial. No more excuses or ignoring the reality of your cash flow.
If you fail to plan you plan to fail. Start writing your cash flow plan today and put yourself in the driver’s seat.
If you would like more information on controlling your cash flow we will send you a copy of our e-book guide, How To Control Cash Flow. Send an email to rosann@theroartgroup today and a copy will be sent to you