Cashflow (or lack of it) is a constant challenge for all business owners. We refer to ‘cash’ as the oxygen a business needs to survive day to day. Cashflow is a critical factor which can lead to the success or demise of your business.
So … how do you avoid a cashflow crisis? Tanya Titman, mentor and business turnaround specialist believes a simple spreadsheet is the best tool to help manage your cashflow. If you’re struggling with cashflow, Tanya is happy to share her spreadsheet template to get you started.
The first step in managing cashflow is to predict when you might start struggling with cash. Then you can put strategies in place to manage the flow.
To forecast your cash position start by listing all the income you expect to receive and all your business’ expenses and when they fall due. Tanya suggests forecasting 12 weeks in advance to identify potential cash shortages. You can then put strategies in place to ensure your business has enough money to keep going.
Most entrepreneurs and business owners don’t have an accounting degree. What they do have is amazing ideas and passion for their business. However, without a full understanding of your financial position, it is easy to make bad financial decisions which lead to a cashflow crisis.
Tanya is an experienced business mentor who offers practical, real world advice. She empowers women by improving their financial literacy – when you understand your businesses financial information you can start making informed, strategic decisions.