(Gloucestercitynews.net)(January 15, 2020)--The wheel of fortune is a fickle mistress and regardless of how well your business is performing today, tomorrow may bring any number of unexpected hazards and unforeseen encumbrances to challenge your business acumen and your business bank balance. Balancing the books is hard enough for a small business, and so it pays to be prepared for tough times and armed with a strategy for dealing with potential cashflow hiccups as they arise. When times are good and money is flowing freely, that’s a good time to start planning for the unexpected, so that in the event of a financial downturn in your fortunes, you can keep things on track. In this article, we look at a few of the ways you can solve these cashflow problems.
Be better at building a budget for your business
When you are enjoying a successful period, it’s tempting to pay little attention to your budget, keeping only a rudimentary spreadsheet at which you’ll occasionally give a cursory glance every now and then, safe in the knowledge that there’s more than enough coming in to deal with what’s going out. Unfortunately, without a sensible budget in place, it can be very tricky to cater for all those new tools, expensive staff parties, and costly resources. Should a downturn occur, this could leave you chasing your tail looking for ways to pay that VAT bill and your corporation tax on tie. There’s nothing like a fine from HMRC to make you wish you’d budgeted more carefully. Preventative maintenance is a great way to solve cash flow problems before they start.
Consider a short-term loan to keep your business running
A sensible short-term loan can be an excellent and productive way of keeping all your business-critical processes moving forwards when cash flow is poor and you would otherwise not be able to afford to keep the business afloat. You could consider liquidating stock or perhaps dip into some savings or even borrow money from a family member or willing business investor. If you’d rather keep hold of your assets and not relinquish any control to a third-party investor, you might look at a short term loan from a reputable lender, such as biz2credit, so that there doesn’t need to be any interruption in your business-critical activities.
Engage with a more flexible working environment
Depending on what sort of business you are and what you deliver, you might be able to dispense with some significant costs altogether. Technology today allows for teams to be far more remote than they used to be, meaning that a physical office might not even be a requirement, saving your business a lot of money in the process. Making a move towards a remote working environment doesn’t mean you have to sacrifice productivity or quality of work either. Studies show that staff tends to be more productive when able to maintain a more flexible approach to their work-life balance.
With some sensible budgeting, a short-term business loan and a more flexible approach to your working conditions mean you should be able to deal with most cash flow problems.