I mentioned in last week’s email that the number one challenge that keeps business owners awake at night is Cash!
One of the most frustrating questions in business is this: The accounts say we made a profit… so where’s the money?
It is a very fair question. Because a business can be busy, growing and profitable on paper… while still feeling permanently short of cash.
That doesn’t always mean the business is failing. It usually means the cash is trapped somewhere.
It might be in unpaid invoices. It might be in stock. It might be in work you have done but not yet invoiced. It might be in tax bills, loan repayments, or simply poor timing.
One of my earliest business lessons was when a friend of my parents went out of business when they ran out of cash. They made roof racks for a major car manufacturer. The problem was their suppliers (and team) needed paying monthly but the car manufacturer paid on 120-day terms (“we’re a household name and those are our terms”). The cash ran out and they went out of business.
So, I decided our next Profit Expert live web event should be all about this – at 10am next Wednesday, I’ll be running “Making the Cash Flow”.
I’ll be explaining why profit and cash are different, how the cash flow cycle works, why growing businesses often feel skint, where cash gets trapped, and what practical steps you can take to improve it.
It is on Zoom and you can book your free place using the button below:
BOOK YOU PLACE HEREIf your business is busy but the bank balance still feels tighter than it should, this will be a really useful session.
Cheers
Jon