THE “CASH FLOW DOCTOR” ON THE 2024 BUSINESS CLIMATE
Having over forty years experience of guiding and advising small business owners on cash flow and financial management I think I’m pretty well qualified to speak as “THE CASH FLOW DOCTOR”.
Here’s how I see my job as “The Cash Flow Doctor”……it’s to :-
** Analyse cash flow problems
** Formulate and propose SOLUTIONS to those problems
** Encourage CONSISTENT ACTION to restore cash flow to good health
In 2024 many SME owners are feeling the pain of cash flow worries. The following challenges immediately come to mind:-
On the income side:-
** Customers not paying their invoices on time
** The ever present risk of bad debts (customers not paying at all!!!)
** Customers cutting back on how much they buy
On the costs side:-
** Much higher energy costs
** Much higher bank interest costs
** Upward pressure on wages and salaries costs
(as employees struggle with the “cost of living crisis”………….of course the business owner will be seeing the impact of the “cost of living crisis” in his/her own household bills too)
All of the above is coming together to progressively squeeze tighter and tighter on many small business owners. If you recognise some or all of the above pain points in your business then you need to take action and take action fast !!!.
Here’s what Ernest Hemingway had to say on the matter:-
In the Ernest Hemingway novel, The Sun Also Rises, there’s one conversation in the book where one character asks another how he went bankrupt……….resulting in the response:
“Two ways. Gradually, then suddenly.”
Take the Medicine and The Sooner the Better
As your Cash Flow Doctor I would write you the prescription to restore your cash flow to good health. Then the requirement is…………. consistent action………. i.e. your business needs to take the prescribed medicine.
The sooner your business starts to take the consistent action necessary to restore good cash flow the less unpleasant the medicine will need to be.
To emphasise this point, I’ll use the analogy of a doctor treating a patient who is suffering from diabetes.
If the patient comes to the doctor early enough then maybe the “prescribed medicine” need be little more than some improvements to daily diet plus a regular exercise regime.
However, if the patient delays, delays and further delays then maybe only a drastic solution will remain………perhaps a leg has to be amputated or, God forbid, both legs need to be amputated !!!
I’m being dramatic because I really want to emphasise the importance of taking the right action without delay………….cash flow problems are very unlikely to go away magically of their own accord.
It Starts With a Conversation
I’m here to help if you’re ready to start a conversation with me.
If you’re concerned about worsening cash flow in your business or if you know someone who is grumbling about slow paying customers then there’s nothing to be lost by us having a chat.
My email address is :-
jim@jwmbusinessadvice-accountancy.com
My direct phone number is : 0141 280 0404
LinkedIn : https://www.linkedin.com/in/jimmoore2010/