I can’t stop thinking about those stats that suggest 40% of SMEs have seen sales fall in the last 12 months and I can’t stop thinking about cashflow.
Yesterday I told you to walk into the finance department and make sure your credit collection policies are nice and tight – that is, you know how you can keep late payers to a minimum and you know how you are going to chase down those debtors that do slip through the cracks.
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Today I want you to grab a few senior staff – most importantly the finance guys – and run through the cashflow outlook for the Christmas/New Year period.
It’s painful every year – your invoices go out in December, key staff go on holidays in your business and outside it, nothing gets paid and suddenly it’s February and there is no money in the bank.
This year, with the economic pressures smashing SMEs, the pain could well be intense.
Talk to your key people about your cashflow forecasts and how and if they can be met.
Do you need to move forward your billing cycle? Could you offer a special discount for early payment over the holidays? Call it a Christmas gift if you like!
Do you need to increase your overdraft or organise another sort of funding? If so, get onto it now and don’t leave it until mid-January when your bank manager is down the coast.
Get it done – today!