Managing cash flow is critical to the success of any business. Get it right, and shareholders, creditors, and employees are happy. Get it wrong, and the company could end up on the ropes.
Cash flow problems can beset even profitable companies, particularly those experiencing rapid growth.
So, how do you protect your company from future cash flow issues?
1. Cut Costs
Cost-cutting will have a more immediate impact on your bottom line than revenue-raising efforts.
Imagine this: the co-founder of a multi-million-dollar HR management software company with almost 500 employees likes to micromanage to the point he, and not the HR department, has sole approval over employee benefits.
Likewise, when any of those hundreds of employees requests time off for holidays, it’s he and not the HR department that says ‘yes’ or ‘no’.
The company doesn’t have a dedicated IT employee to fix computers or printers because that same co-founder believes its gifted engineers should be able to resolve any IT problems that occur—no matter if doing so pulls them away from developing products or resolving customer problems.
When your company is facing yet another cash flow crisis caused by late paying customers, it can be hard to believe there might be a solution.
But there are steps you can take to overcome the problems delinquent payments cause and to avoid them happening again.
Late payments are something that hundreds of thousands of SMEs experience. Of the 1.7 million SMEs in the UK for example, 640,000 say they have to wait beyond the agreed terms for payments,
Leaving lucrative and secure C-suite positions mid-career to build a part-time portfolio might seem crazy but many of those who’ve done it say it is one of the sanest decisions they’ve made.
Take Michael Citroen, who at 58 years old is a 14-year veteran of the part-time portfolio job world. The former Group Finance Director (FD) relishes the challenge and excitement of working with half a dozen SMEs in his role as a part-time FD.
The story of how LEGO, the family-owned toy company went from teetering on the brink of disaster and haemorrhaging cash to delivering the highest revenues in its entire history and being voted the 2017 Most Powerful Brand in the World makes for a truly inspirational tale…
Fourteen years ago, LEGO’s Head of Strategic Development Jørgen Vig Knudstorp delivered the kind of assessment that most managers would gladly superglue their own ears shut to avoid hearing.
What do Sir James Dyson, the Mercedes F1 team, Pixar, Google and the airline industry have in common?
They’re hugely successful, yes. But the thing that links them is they never shy away from the ‘F’ word—Failure. Instead, they face and learn from their mistakes, errors and mishaps. So says Matthew Syed, award-winning Times journalist and best-selling author of ‘Black Box Thinking: Marginal Gains and the Secrets of High Performance’ (John Murray).
Hear the words ‘corporate espionage’ and you might think it’s only something that corporate giants need to worry about.
But that’s not the case, corporate espionage is something that can affect companies of any size. Despite what you might believe, the threat is highly likely to come from within your organisation.
The corporate spy could be a dissatisfied or disgruntled employee, a manager, or a supplier, according to Rick Orloff, CSO at Code 42,
Check out CNBC’s interview with Sara Daw, Group CEO of The CFO Centre on the rise of the part-time CFO:
Rapid growth is the stuff most entrepreneurs dream about as they take their fledgling company through the early years but when it happens, it can quickly become the stuff of nightmares.
The bubbles in the celebratory champagne—“Here’s to our success!”—barely have time to go flat before the problems arise across the high-impact growth or Scale Up business.
Suddenly owners are beset by problems involving the people they’ve hired or not hired,
On the first day of Christmas, my part-time CFO gave to me an introduction to business reporting and advice on creating a business strategy.
On the second day of Christmas, my part-time CFO gave to me more ways to attract money, an introduction to business reporting and advice on creating a business strategy.
On the third day of Christmas,