Cash is KING for small business SUCCESS

“How can a business making THIS much in sales, and THIS much profit battle to keep going”

This is a common question among all business owners and the answer is CASH FLOW! Your business can be breaking sales records over and over. You can “tighten the belt” on expenditure….BUT without controlling and understanding when that actual money goes in and out your bank account…it can still result in those terrible sleepless nights and maybe even “Doors closed”.

One of the services I provide to small to medium sized business’ is a monthly “Check-in”.

I analyze the businesses :

  • past months’ performance comparing actual performance (both revenue and expenses) to what we planned and what we expected,
  • I analyze their Gross Profits / Margins, also looking at the Net profit figure and %ages.
  • I continuously re-look at Break-even points (both without and with targeted profit), and
  • other more specific industry and business specific analysis…
  • AFTER all those numbers, THE CASHFLOW is what I find pulls it all together and gives my clients the most insight into how they are really performing today and tomorrow …..and how it all affects their back pocket in the months to come.

A simple analysis of the in's and out's of cash can help you see into the future!!

Many business’ have really taken a hard hit from the GFC, and a CASHFLOW analysis can really give small businesses the clarity as to IF and HOW they are going to be able pay their Wages, the tax man, their suppliers…and all those other “faces” behind those dreaded phone calls. The cashflow analysis can allow you to look a few months into the future in terms of cash in and cash out, and see any shortfalls on the horizon. It can help you strategize as to how the cash shortfall can be fixed. Some of the questions you can then look into are :

  • Can we increase sales without compromising our margins?
  • Can we put more pressure on our Customers who owe us money?
  • Can we get better credit terms with our suppliers?
  • Can we approach the tax man for payment terms?
  • Do we need to approach the bank for a higher overdraft facility to carry us through?

No matter the size of your business, if you dont have one key element, CASH, keeping your doors open can mean sleepless nights for you the business owner….and can result in those doors closing forever.



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