The stable mate of so many SME businesses. If you are an owner, you know what I am talking about.
As a Business mentor in London I know it’s a touchy subject. One we all like to park away and leave to someone else. Because we like running the business, don’t we? We aren’t keen on the bad news so bury our head in the sand. That doesn’t help though. We need to take the business finances by the horns and give it the same injection of energy that our sales teams deliver. Why? Because it’s the liquidity that keeps you afloat. It’s the one constant that pays everyone’s wages, allows you to invest, allows you to see beyond survival mode.
Survival mode, the worries that never go away. The worry of the p.a.y.e. coming up oh and it’s a vat quarter too. Then there is the wages, and we haven’t even hit breakeven in the last 2 months. So the pattern goes on month in month out. You lay there in bed at 4 in the morning trying to Rob Peter to pay Paul.
Is that what you went into business for? Of course, you didn’t. So how are we going to change this pattern and get you back on track? You have already cut all the costs you can, probably your wages at times too.
First things first, do you give credit? if yes make sure the credit given is on your terms and not that of your customers. Do you have terms and conditions all your customers sign up for when you initially engage with them? It saddens me to say it, but those big corporates still revel in making us smaller guys wait 90 days for the pleasure of their deposit.
Next let’s look at our accounts department, is there a system to make sure every single client pays us on our terms consistently on time? Then what are the competition charging? When was the last time you put up your prices? Good relationships with the right customers allow you to charge the right price for your work. Ever received those yearly letters from your suppliers with a lame excuse about exchange rates, raw material blah blah. They are in on it, why aren’t you?
Now we might start to look at some tracking mechanisms so we can benchmark our performance. Are the sales on track are they increasing on last year? How? Why? Put it in a simple spreadsheet. It gives you the confidence to manage your cashflow better, the confidence to think about growing the business rather than just existing on survival tactics.
We are only just scratching the surface but a few targeted changes to your business can lead to a whole new future. That is where I come in. As a business mentor I am there to help you get through the challenges, help you look at your business as the successful entity it is. Help you focus on what you love doing best, while systems and good teams take care of the rest. Now who is controlling who?
One of my free complimentary mentoring sessions is a great way for you to understand more about yourself and your business. Allows you to see if a Business mentor really can work for you without any commitment. If you would like to talk to a Business mentor in London It’s easy just drop me an email.
Director & Business Mentor
NORTH KENT & SOUTH EAST LONDON
Mobile: 07711018897 Email: email@example.com
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