There are so many reasons for businesses to run out of cash. Sometimes the causes are clear, sometimes it’s a complex web of reasons. Sometimes it’s been building for a while and other times it’s more sudden.
Either way the effect is usually the same, you find you can’t pay your bills. It’s a frightening prospect; there is a list of bills on your desk and not enough cash in the bank to pay them.
I remember a friend of mine who works in the oil exploration industry in remote parts of the world, Chris used to get into really scary situations and developed an interesting crises response methodology: “If there is a crisis and you need to respond absolutely immediately (such as using the fire extinguisher) do it. If not, have a cup of tea and plan your actions”
It is not so different in business. Is the lack of cash simply because of an admin error, a cheque that has genuinely gone astray (it has happened), or sadly, as is increasingly likely, is there something more serious? Is this is a short or a long term problem? Remember cash is king, if you don’t sort it, you won’t succeed.
Category: Finance
Financial advice for owners and managers of small and medium sized business SMEs in the UK All your tax, borrowing and administration advice
What insurance do i need?
Insurance is an essential aspect of your business, but even the best entrepreneurs can find it confusing. Specialist insurers Bussinesssure are here to make things clearer, and explain the different types of business insurances you should consider:
