All bank managers, lots of angel investors and many, many failed business owners will all tell you that profitable businesses go bust. Why? Because they run out of cash! The saying profit is vanity and cash is sanity is just so true and the roadside is littered with businesses that failed to live by that mantra.
Sadly too many businesses don’t seek help soon enough, they prefer blissful ignorance of what was happening in their business. A recent CoachSME survey found that around 60% of businesses don’t track any KPIs at all. No wonder they don’t see the inevitable hurtling towards them.
I am constantly amazed at how many trading businesses do not have a forward cash flow – 12 months would be nice but even a couple of months is better than nothing at all. Some businesses don’t even pay attention to the monthly management accounts preferring a quick check as and when they remember.
So am I surprised that successful businesses fail?
Can it be avoided? Not in every case but many more businesses’ would have survived if they had watched their cash flow like hawk and done something when the trend appeared to be changing direction!
So, what should you be looking out for?
Related Post: Are You Paying Too Much?
If you don’t know the answers to these 20 points then you could be hurtling towards a problem. It’s time to change because if you don’t you might wake up one day and find that you don’t have a business anymore!
More Help Available at : 3 Pieces of Paper
1. Follow me on Twitter / LinkedIn and let me know the business challenges keeping you awake at night that you want to solve. Click here to email. Connect with me, The Business Planning Coach on Facebook and Instagram.
I host the Small Business Clinic on Clubhouse every Tuesday & Thursday at 8am. Drop in and ask me & my panel of experts a question.
2. Grab a copy of my book The Grown-Up Business (paperback and Kindle). Get the tools and inspiration you need to go to the next level of wealth.
3. Work with me on your growth business to overcome the blockages, hurdles & problems that are holding you back. Join the community, email me with Let’s Get Started in the subject line or book a 30 Discovery Meeting using Calendly