Cash and cashflow are the one thing that impacts directly the success of your business i.e. you need to ensure that you can pay your staff, pay your suppliers, pay HMRC, and also pay yourself.
It is also important to note that the one in five ‘Startup’ businesses that did NOT make it to Year 5, gave the reason for failure as being cashflow issues – in other words a lack of CASH!
- Profitability is key to any business’s success, but
- Cash is key to every business’s survival
Sometimes discussions around managing, or better still improving, a business’ cashflow can be ALL about reports and forecasting, but frankly it is generally a variety of simple and practical steps that will make the biggest IMPACT on YOUR cash and cashflow.
My own experience is that it is NOT ONE thing that will improve cashflow e.g. credit control, using Stripe, etc, but a combination of the ‘right’ things being done regularly and consistently each week AND each month!
