Do you know how many days/weeks/months your business can survive without much income? Most business failures are due to poor cashflow. Amid the various Covid alert levels, businesses must know their cash position more than ever. That knowledge gives you a key advantage to success because it allows you to plan around it rather than using the firefighting approach. Sounds less stressful, right?

When assessing your cashflows, did you take into consideration that some clients might take longer than usual to pay you, some stock items might be missing thus reducing your sales level, your gross profit margin might take a hit due to supplies price increase?

Now, it’s even better if you can develop a strategy to improve your cash position - even in the middle of lockdowns. How can you do that I hear you say?

Here are a few basic short-term tips:

• Some suppliers might be open to longer payment terms
• What supplier price increase can you pass on to your customers?
• While you don’t want to be too hard on your customers, have you reviewed your late debtors?
• Is now a good time to switch to interest only loan repayments?
• When was the last time you (re)negotiated the interest rate on your loan(s) with your bank?

What makes the real difference is your attitude: do you see the glass half full or half empty? Do you see this season as a time to cry on your losses or as an opportunity to re-invent yourself? Now might be a good time to re-define your business strategy.

If you need help with this, I am passionate about helping businesses succeed.