Where’s Your Cash Hiding?

Chris Fry looks at some of the key challenges business owners have to face..

Posted by Chris Fry

Finance Director and Business Coach - Chris Fry Consulting Ltd

Mon 08th, Jun

Running a business has many challenges but there’s nothing more stressful than the sudden realisation that you’re running out of cash and may not be able to make payroll. Every business I have ever advised has been sitting on pockets of ‘hidden’ cash. Here are 4 of the easiest for you to get your hands on it.

 

     1. Discretionary spending

The quickest way to improve your cash position is to stop spending the money you’ve got.  And I don’t mean stop paying your suppliers!  Every business has discretionary spend.  The problem is, over time, discretionary spend becomes normalised.  It’s a bit like your Sky+ HD subscription; you might think you can’t manage without it but if you had to cope, life would go on!

 

      2. Prompt Invoicing

Don’t ever be too busy to invoice your customers. If you’re short of cash, you need your customers to pay you.  But before they can pay you, they need you to send them the bill!  Make sure that whoever is responsible for your invoicing understands how important this is.

 

      3. Debt Collection

From many years of practical experience I can assure you that most businesses don’t chase outstanding invoices.  Not for some weeks anyway. Don’t let this be you.  Pick up the phone and get your money in.  It is your money after all!

 

      4. Stock Management

Unless stock is managed proactively it grows. One client of mine had enough surplus stock on the shelves to pay off the overdraft and put cash in the bank!

 

If you’d like to learn more about the hidden cash in your business, visit my 60RUM on 26th June which will give you 10 Immediately Actionable Steps that you can use to improve business cash flow (without recourse to external finance!)

Join Chris Fry on Friday 26th for 60RUM 'Where's your cash hiding?'

Read More
Leave a comment

Technology and the legal sector

Fri 16th, Aug

In his latest blog Mitchell Charlesworth partner, Mike Buxton, looks at the impact of technology on the legal sector.

Take action now if you’re relying on cloud synching services to back up your data

Mon 12th, Aug

If you’re assuming that your cloud synching and sharing services, such as Dropbox or Google Drive, are acting as your backup or are taking responsibility for automatically backing up all your data, then, please, think again!

Business LPAs – what are they and why do you need one?

Mon 05th, Aug

Dynamic, thought-leading business owners are failing to include a business lasting power of attorney in their crisis management preparations, a leading solicitor has claimed.

What every SME should know about personal guarantees

Wed 31st, Jul

Start-ups and SMEs looking for sources of funding need to think carefully before signing personal guarantees, according to a leading corporate lawyer

5 minutes with...

Wed 31st, Jul

John Drysdale, Managing Director at No Guru ltd

The impact of Brexit on the legal sector

Mon 29th, Jul

Mike Buxton of Mitchell Charlesworth looks at the challenges facing law firms

Easy ways to avoid an IT disaster in this hot weather

Mon 29th, Jul

Whilst we have all been enjoying the recent heatwave, our computer equipment definitely has not

Start saving money NOW by switching to VoIP before BT switches you off

Mon 29th, Jul

One characteristic that successful businesspeople display time and time again is the ability to see opportunities where others only see problems...