In a recent study by independent business funder Bibby Financial Services, 69 percent of business owners in the UK are optimistic that the economy will not decline in the coming year, and over half of the 1,000 businesses surveyed expect to see steady growth.
The study also revealed that many business owners are planning ahead with almost 60 percent stating that they had, or would be shortly, created business plans for 2014. Many are also looking to expand and exploring funding possibilities to support their ambitions.
Are you considering expansion or growth plans in 2014? If you are, are you confident that you have a strategy, and the systems and processes in place to support them?
To read more about the study and download the whitepaper click here.
As a follow on to my previous article on cash flow management let’s look at ways to prevent poor cash flow.
Healthy cash flow isn’t achieved simply by making sure your outgoings don’t exceed income. If you’re to survive, sufficient cash must enter your business so you can pay your bills when your suppliers ask for their money.
Steps to prevent poor cash flow
Here are some suggestions for things you can do to prevent these scenarios (mentioned in my previous article) from occurring in the first place.
Effective cash flow management is crucial. Although it’s a challenge and you need to be making enough sales, there are many things you can do to ensure sufficient cash enters your business when you need it to.
In tough economic times, many small businesses struggle to manage their cash flow adequately. Where they once thought they were cruising along nicely, a bump appears in the road and they are thrown off course. All business owners should undertake what the experts call a ‘stress test’ of the business and have risk management strategies in place to ensure the business survives bumps along the way.
So what does a ‘stress test’ involve and more importantly, what does it all mean?