I hear these problems on the daily from business owners around the world - all which indicate a cash flow problem. Funny thing is, they're 'too close' to their problem and so they're unsure about the magnitude or effect of the 'symptom' they experience.Do any of these sound like you?

Capital and Cash Flow

• I never check my bank account - we're still in business, aren't we?
• I use personal savings to keep my business afloat
• I use a line of credit to give business operations a shot in the arm
• I use credit cards to help me meet expenses
• I need a business loan - I'll use it for all sorts of things
• We're pursuing investment capital earlier than we thought we'd need it
• I can't pay my business bills till I get paid
• I juggle which bills are high-priority

Capacity

• We work over capacity to earn revenue
• Occasionally we get slammed with work and I hire contractors to pitch in...there goes my profit!
• I accept any projects to pay my bills
• I use employee furlough as a short-term cash flow solution
• I need to dip into my profit margin as we're always over allotted billable hours

Bills and Expenses

• I'm at the mercy of vendor payment terms
• I'm not able to provide for my employees when it comes to benefits and perks
• I use invoice factoring to get cash in the door
• Our expenses far exceeded our projected revenue
• I guess these expenses and losses are just the 'cost of doing business'

Sales

• My business doesn't depend on 'sales'
• Sales forecasting is about as accurate as weather forecasting...why tune in when it's wrong 25% of the time?
• I pay my commission on revenue generated from sales deals
• I've got a bunch of wildcat salespeople - they do whatever, but some of the deals look weird.
• We always seem to have too many - or too few! - contracts
• I trust my gut when it comes to deals

Invoices and Payments

• I need....NEED....to get paid for last month's job
• I hate cheques
• I'm not sure I can meet payroll without help this month
• I'm looking to downsize employees because they're a huge cost to my business
• I thought we were running in the black, but I never feel far from disaster

Growth

• I can't see risks coming - good thing I have other sources of funding to bridge me
• I can see opportunities pass us by but I'm never prepared and don't have the capital even if I had a plan. There never seems to be enough lead time.
• My banker has to drag information out of me...I dread those conversations!

Diagnosis: Cash Flow Crunch

Even with one of these symptoms, the diagnosis is the same. Cash flow crunches are fatal to 1 in 4 businesses that experience them.

Problem is, if you don't step back and see your 'symptom' as part of the bigger picture of cash flow management, the findings are grim: you're unlikely to take the steps you need to make your business financially healthy over the long term.

In other words, dead, deader, deadest.‍

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