ng and is a major factor of business life but there are some things you can do. Start by creating a culture in your business that states 30 days credit means 30 days, not 31 or a week later and stick to that culture for everyone. It is often those you have a close relationship with or have dealt with for years that can be the slowest payers.

Ensure they know the rules apply to them too. Businesses often choose which bills to pay each month based on ho

If there was a single thing that business tends to fall victim of, is it how cash flow is managed and controlled within a business. In fact It is believed that most businesses that stopped trading could have survived with their current level of trade had their cash flow been in better shape. Here are some common issues.

Seasonality.

Most business will have busy times and quiet times throughout their year based on the type of business they are in.

However time and time again, I see sales forecasts that are exactly the same month after month which are based on the Company’s base outgoings rather than customer buying trends. In my experience the two don’t always match.

It is also important that you know when the money is going to come into your business and when it isn’t so you can plan for the lean times. It is equally if not more important to do the same with your outgoings. You will pay some bills monthly, but some larger ones are likely to hit you once or twice a year at specific times such as PAYE, taxes accountant fees, insurances etc.

Lean trading periods coinciding with expensive unplanned outgoings are a regular reason for businesses failing. Yet with a little bit of planning and reviewing previous years figures, the peaks and troughs can be levelled off. Write down in your diary or a specific planner when you expect the large bills and review your sales targets to suit actual buying patterns. Put all this information in plain view, so you are constantly reminded. Then if you need to, hold some money back for those leaner times. Easy but effective!

Slow Payment Of Invoices.

Another fact of business in the UK is the slow payment of invoices. Many businesses have failed owing money, but in reality had sufficient money owed to them to stay afloat. Getting paid is very frustrating and is a major factor of business life but there are some things you can do. Start by creating a culture in your business that states 30 days credit means 30 days, not 31 or a week later and stick to that culture for everyone. It is often those you have a close relationship with or have dealt with for years that can be the slowest payers.

Ensure they know the rules apply to them too. Businesses often choose which bills to pay each month based on how

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However time and time again, I see sales forecasts that are exactly the same month after month which are based on the Company’s base outgoings rather than customer buying trends. In my experience the two don’t always match.

It is also important that you know when the money is going to come into your business and when it isn’t so you can plan for the lean times. It is equally if not more important to do the same with your outgoings. You will pay some bills monthly, but some larger ones are likely to hit you once or twice a year at specific times such as PAYE, taxes accountant fees, insurances etc.

Lean trading periods coinciding with expensive unplanned outgoings are a regular reason for businesses failing. Yet with a little bit of planning and reviewing previous years figures, the peaks and troughs can be levelled off. Write down in your diary or a specific planner when you expect the large bills and review your sales targets to suit actual buying patterns. Put all this information in plain view, so you are constantly reminded. Then if you need to, hold some money back for those leaner times. Easy but effective!

Slow Payment Of Invoices.

Another fact of business in the UK is the slow payment of invoices. Many businesses have failed owing money, but in reality had sufficient money owed to them to stay afloat. Getting paid is very frustrating and is a major factor of business life but there are some things you can do. Start by creating a culture in your business that states 30 days credit means 30 days, not 31 or a week later and stick to that culture for everyone. It is often those you have a close relationship with or have dealt with for years that can be the slowest payers.

Ensure they know the rules apply to them too. Businesses often choose which bills to pay each month based on ho

me bills monthly, but some larger ones are likely to hit you once or twice a year at specific times such as PAYE, taxes accountant fees, insurances etc.

Lean trading periods coinciding with expensive unplanned outgoings are a regular reason for businesses failing. Yet with a little bit of planning and reviewing previous years figures, the peaks and troughs can be levelled off. Write down in your diary or a specific planner when you expect the large bills and review your sales targets to suit actual buying patterns. Put all this information in plain view, so you are constantly reminded. Then if you need to, hold some money back for those leaner times. Easy but effective!

Slow Payment Of Invoices.

Another fact of business in the UK is the slow payment of invoices. Many businesses have failed owing money, but in reality had sufficient money owed to them to stay afloat. Getting paid is very frustrating and is a major factor of business life but there are some things you can do. Start by creating a culture in your business that states 30 days credit means 30 days, not 31 or a week later and stick to that culture for everyone. It is often those you have a close relationship with or have dealt with for years that can be the slowest payers.

Ensure they know the rules apply to them too. Businesses often choose which bills to pay each month based on ho

and review your sales targets to suit actual buying patterns. Put all this information in plain view, so you are constantly reminded. Then if you need to, hold some money back for those leaner times. Easy but effective!

Slow Payment Of Invoices.

Another fact of business in the UK is the slow payment of invoices. Many businesses have failed owing money, but in reality had sufficient money owed to them to stay afloat. Getting paid is very frustrating and is a major factor of business life but there are some things you can do. Start by creating a culture in your business that states 30 days credit means 30 days, not 31 or a week later and stick to that culture for everyone. It is often those you have a close relationship with or have dealt with for years that can be the slowest payers.

Ensure they know the rules apply to them too. Businesses often choose which bills to pay each month based on ho

ng and is a major factor of business life but there are some things you can do. Start by creating a culture in your business that states 30 days credit means 30 days, not 31 or a week later and stick to that culture for everyone. It is often those you have a close relationship with or have dealt with for years that can be the slowest payers.

Ensure they know the rules apply to them too. Businesses often choose which bills to pay each month based on how much hassle they get. Make your invoices the ones they want to pay. Consider offering a discount for quick payment, such as a percentage for payment within 7 days. You could charge interest for late payment, but this tends to annoy your customers rather than encouraging them to make a quick payment.

Finally factor in late payment into your cash flow planning so that no one payment takes your Business to where it doesn’t want to go. These small culture changes and disciplines can and will make a difference to the smooth running of a major organisation to a one-man enterprise.