Make sure your cashflow is ready for the holidays
Wednesday, December 15, 2010/
As a start-up entrepreneur, it is really crucial that you enjoy your Christmas holiday. Because when you get back, there is a chance that things could get very, very ugly in the cashflow stakes.
One of the big problems with the Christmas break is that everything stops and it takes an extremely long time to get started again. For example, invoices that you sent out in December are likely to sit on someone’s desk for most of January and possibly even into February if the payroll person at your customer’s company takes a long holiday.
You need to be prepared for this.
Where possible do a bit of a ring-around and chase any outstanding debts in the last week or so of Christmas.
If things are looking a little grim, it might be worth getting in touch with suppliers and letting them know the situation. They are probably expecting a cashflow break too, but it doesn’t hurt to be open with people.
Finally, work out if you are going to need some working capital to get through the post-Christmas period, just to keep the wolves from the door. If so, make sure this capital is in place.
Get it done – today!
From the frontlines
Why you should find the right role for the right person — not the other way around Bruce Stronge Outfit founder
Five lessons from five startups: What this entrepreneur learnt from 20 years in business David Lye Price My Car founder
From stagnant to sophisticated: Why startups are best positioned to champion the AI revolution Geraldine McBride MyWave co-founder
Learning from adversity: How Katt Srinivasan went from rock bottom to e-commerce entrepreneur Katt Srinivasan The Bargain Avenue founder
Bitcoin isn't a boy's club, women just aren't getting involved Chantelle de la Rey Amber co-founder
Managing a remote workforce is simple, writes Hometime co-founder William Crock William Crock Hometime co-founder