On the 23rd March life as we knew it changed! None of us knew when Boris Johnson made this announcement what this would mean to us and our businesses.
Ten months on and Covid-19 has surpassed every other pandemic or epidemic in the past 150 years in both size and impact.
Most entrepreneurs and businesses are struggling in the current environment and cash flow has become an issue for all sizes of business.
Here are a few measures that you can consider or should be doing:
Cash Flow forecasting
It is more important than ever to understand and manage the cash flow of your business. A cash flow forecast enables businesses to track the expected cash movements over a period of time in the future.
There are seven places where you can look for cash in your business: price, volume, cost of goods sold (COGS), overheads, accounts receivable, inventory, and accounts payable. It is crucial that you work out -given your current revenue and funding (equity + debt) availability- your scenarios and establish a path forward to optimising cash.
Cash flow forecasting will help you to identify when the business may run short on cash.
Reviewing what costs you have
Analysing all of your outgoing expenses for the business, looking at this line by line to see where you can reduce, or remove the costs where possible. One of your largest overheads is office space! Could you consider renting part of your offices out or even consider that remote working is now the way forward for your business?
Review your suppliers
Reviewing old contracts can be beneficial, as you may even have some contracts in place that you no longer use. When reviewing the contract the negotiation could be beneficial for both parties.
We are all aware of the standard government funding options that have been made available during the pandemic. Extending your search for alternative grants and bursaries to support you through this challenging time.
Stay on top of your client’s payments, if you feel that they are also struggling offer payment options to help them but it’s also getting some cash back into your business rather than create an unpaid debt.
We understand the pressure that yo9u are facing as a business owner at the moment, we have a team here that can work with you on your cash flow forecasting to understand what the health of your business is looking like. We can also help you with the various funding options that are available to you.
Understanding businesses like yours is what we do. If you would like to have a chat call 0121 711 1957 Or email [email protected]