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

Give Your Business Utilities a Refresh for 2020

Mon 20th, Jan

January is a time for reflection for most people and this includes business owners, with the new year bringing with it an opportunity to take stock of performance during the past 12 months, create goals for the year ahead, and ensure...

The Inspired Energy Journey: Building a Business to Meet Diverse Needs

Mon 20th, Jan

Since its inception back in 2000, Inspired Energy has been working tirelessly to build the most complete utilities management solution available – a solution that can meet the diverse needs of businesses of all sizes and across all sectors.

What did the Millennium Bug teach us about cybersecurity?

Thu 09th, Jan

It’s hard to believe that two decades have passed - but 20 years ago the world was celebrating a momentous non-event. We remember it well!

Why Should You Check Your Business Energy Bills?

Wed 18th, Dec

Business energy bills are complex, there’s no doubt about that. With a widening range of non-commodity costs now taking up a majority share of the invoice, it can be be both confusing and time consuming to effectively recognise whether your...

Green Energy – Going Green Doesn’t Have to Cost the Earth

Wed 18th, Dec

In the third quarter of 2019, electricity generated in the UK via renewable energy sources surpassed electricity derived from fossil fuels for the first time.