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Avoid cash flow problems

Cash flow is the total amount of money being transferred in and out of a business. So typically every business needs to avoid cash flow problems. Studies have shown that 90% of small businesses close their doors because of poor cash flow management. Here are just a few tips to avoid the problems;

1) Plan– Planning means you can plan for unexpected costs. If you have money aside then any unexpected problems such as illness, can be avoided. If you fail to plan, you plan to fail.

2) Profitability – Some businesses may have high profitability but if there costs are higher then the business will not be actually be making any money.

3) Growth– Growth means additional costs. Things such as advertising, equipment and maybe needing extra staff are all examples of costs which you may need to take into consideration. Many businesses see themselves fall when trying to grow.

4) Invoicing– To avoid cash flow problems you will need to collect payments from clients as soon as possible. For many small businesses late paying clients can cause a huge problem. A way you can prevent this from happening is to invoice as close to the sale as possible- some business find that even invoicing before the job is incomplete helps. Chasing clients payments will also mean you can avoid these problems.


For more advice or help on this call our Manchester offices to speak to a member of our team on 0800 020 9542 or email

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