Cash flow is a massive problem for Australian small business and with around 80% of small business owners
going bust in 5 years, so it’s time to look at your business ready for the NEXT financial year!

It’s tough out there. But sometimes when a small business is growing, the business gets really hungry (like a baby) and then the time comes to expand.  That expansion could mean moving into a premises, buying more equipment or even employing help while you focus on your growth areas.

However this decision should NEVER be made without having a good look at the actual cash-flow in your business.

Many clients ask me to explain why they are showing a profit and yet they have “cash-poor” bank accounts.  The simple answer is cash flow!

Without cash flow, the business slows and that’s a fact!  Small business has a high failure rate in its first 5 years (80% to be exact) thanks to a recent study.  So if you don’t want to be one of them you MUST get a professional to look at your cash-flow.

Expenses are a huge part of running any small business but if your bills are unpaid, it is a true reflection of the business’ cash flow.  Sometimes a customer pays you late, then you are late in paying your bills and the next thing you know YOUR TAXES are late. And trust me when I say the last thing you want is the Tax Man breathing down your neck!  So BEFORE you look into expanding your business office premises, employing staff or buying equipment get professional help.

Some ideas to consider: If you are thinking of buying a business property or even entering into a long term lease you can look at these options which ensure you can get out at your earliest convenience:

• Enter into a 6 month agreement if you can.
• Get a “Serviced Office” which has a shorter notice period
• Look at hot desking (a great pay-as-you-need option) such as www.spacecubed.com 
• Search for businesses that have spare office space, which you could share. This might be a company that has a similar client base. For example: Real Estate Agent and a Mortgage Broker.

But again, – before you make any of these important decision please speak with a professional. It can cost your business, if you don’t look after your cash-flow issues.

So if you are “Cash poor” in your business or worried about your growth, please give me a call today to discuss your options. First meeting is free! 

Share this article!