Cashflow Planning, Credit Management and Debtor Control

If you're bothering to read this, then you already know that managing a business with tight cash resources is really tough, and you never want to be in that situation again.

But interestingly that’s what many businesses do ... they repeat exactly the same processes that once lead them into a poor cashflow situation, while at the same time expecting a different outcome!  That’s not optimism; that’s insanity.  But it's the kind of insanity that can easily result from the normal pressures of business.

Probably the worst aspect of a tight cashflow is the realisation that it's a trap, and that you don't know how to get out of it.  So it becomes an unending rut at best, or a downward spiral to bankruptcy at worst.

But the most sinister aspect of a cashflow crisis is that it can creep up on you slowly, and like the frog placed in water brought slowly to the boil, you can find yourself unable to react with the necessary urgency before you are cooked!

By contrast, a frog thrown into a pot of already boiling water will jump straight out.  And that's what is needed in a cashflow crisis ... action that is decisive, rapid, and sometimes radical.

But will you be jumping to safety, or into the fire?  The sort of action that is needed has attendant risks if not carefully considered; so it's best to consult with people who know from experience exactly what to do, and how to go about it, because you may not have time to figure it all out for yourself before you go under.

Edensilk consultants can quickly identify the issues that are hard to see when you are 'embroiled' in the day to day running of your business.  Furthermore, we have the expertise to give you a plan of attack to actually make the changes happen.

Often the best answer is not a simple one; but one that requires a combination of areas synchronised for optimum effect.  That’s where having a coordinated team of business consultants works so well.

Usually the answer involves collecting debts more reliably and quickly ... we have a proven system that works for your business while still keeping your customers on-side.

But that's just dealing with the immediate symptoms.  Usually the problem has more fundamental roots.

Maybe the cause of your cashflow crisis is insufficient sales volume, or seasonal sales patterns.

Or maybe you need to conduct some margin analysis.  Edensilk has been successfully helping businesses get this right for many years.

Often the business finance levels need renegotiating.  Edensilk can coordinate your involvement with your bank, or we can recommend experienced finance brokers to get the right deal for you.

Other times it is expenses or staff skills that need attention.  Managing this is tricky and can go a lot more smoothly with proper business coaching.

Of course, the best solution is to avoid a cashflow crisis altogether with careful budgeting and financial coaching to ensure that the business swerves around disasters rather than unexpectedly falling into them.  Edensilk has state of the art forecasting tools to achieve this exact aim for you, quickly and practically.

Contact Dene Marfleet on 08 9271 7661 to find out more.

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