This month is all about the cash problem; we will give you some great insight and advice on how to manage your cash flow. Cash is like oxygen for a business; you will always need a source of it to keep you going. With our simple must-haves, you’ll have the right tools and tips of how to solve your cash flow and know a bit more about why it’s so important.
Stay tuned for more tips on how to grow your business and resolve all the common scenarios that most businesses come across throughout their time.
The Cash flow Problem
Cash is a problem for any business. The two main issues are either a lack of it, or too much of it. If you are suffering a lack of cash in your business, you probably think having too much is not a problem, but it is just a different problem.
The importance of cash cannot be overestimated. It’s the lifeblood of the business; without it, you can’t pay your suppliers and staff, and you will quickly find your business struggling.
“Why is too much cash a problem?” I hear you ask. The reasons are; first, that cash sat in a low or no-interest account is reducing in value and is costing you money and secondly, the cash is at risk if it sat in one account.
Cash flow issues are one of the main causes of stress and worry for small business owners. There is nothing worse than looking at your bank balance and then looking at the date and thinking “I am not going to have enough to pay my staff next week.” It’s probably the one thing that keeps business owners awake at night.