We could all make the mistake of assuming that turning profits alone tells us the health of our business and determines whether we are running a successful company. However, profit alone should not be the only financial focus of yours if you’re looking to create a stable business long term.
Cashflow and its appropriate management are also critical aspects of running a business because without a predictable cash flow, you cannot cover overheads, pay employees regularly, and confidently manage day-to-day operations. Without forecasting what you are bringing in, there’s little to no hope in expanding and growing your business.
So, what we need is to ensure we have a strong cash flow position and focus our thoughts on driving profits.
We support our clients in many ways, allowing you to keep on top of your business’s financial management and offer insights into some of the technical terms needed when discussing money matters.
Getting your head around the critical process of cash flow management is necessary, in times both prosperous and challenging. If you’re interested in some support in this, do not hesitate to contact us at Glance Consultants.
Let’s take a quick look at some of the key points to be aware of in regards to your finances:
- Profit is a by-product of success.
High profits are welcomed but can be unstable in the long term. A strong business seeks to have consistent revenues.
- View your cash flow as the blood running through the veins of your company
Without steady cash to cover your operating expenses, you have no real chance of sustaining operations.
- Know your costs
An ideal world is where we have more cash inflows than outflows, so make sure you carefully manage and understand your expenses.
- Action is essential
Be proactive about your spend management by choosing cheaper suppliers or negotiating better deals to impact your cash flow position positively.
- Understand how to drive more revenue to your business
Through clever sales and marketing activity that works for your business, you can increase revenue and boost your cash flow.
- Remember; keep the cash flowing, and profits take care of themselves.
As your company sits on an excellent financial foundation with the correct cash flow position, then you have scope for investment and business growth.
We are here for you if you would like to discuss ways of improving your cash flow management.
Whether you are a new business owner or a seasoned entrepreneur looking for some fresh insights, your support can be found here at Glance Consultants, so get in touch today via phone call on 03 98859793 or at enquiries@glanceconsultants.
