Cash Flow Problems

It’s not uncommon for a business to be around for a few years without paying attention to the numbers.

But just because it’s common doesn’t mean it’s smart.

According to SCORE, 82% of small businesses fail due to cash flow problems.

"Problems" that were largely ignored in the early years because, frankly, it’s a lot more fun to build than be realistic about numbers. 😅

I’ve been in business for several years and I’ll admit I don’t enjoy looking at my own numbers, even good numbers. I get a twinge of anxiety every Friday when I commit to reviewing my bank accounts, financial statements, and other statistics.

And I’m not alone, most of the entrepreneurs I advise don’t like it either. In fact, many of them flat out avoid it.

That’s where it comes in handy to have a person hold you accountable and build fiscally responsible behaviors into the organizational culture:

Here are a few ways I do that with my clients:

• Weekly dashboard reviews

• Monthly financial statement reviews

• Quarterly strategy sessions around goal setting and alignment

• SOPs for budgeting, expenditures, collecting, and other behaviors that can affect cash flow.

It’s also critical to keep the team appropriately informed with visibility into organization-wide performance.

As a team member there's nothing worse than feeling like you don’t know what’s happening week to week.

As with anything worthwhile, it takes time to implement these strategies. But it’s worth it in the long run.

❓ How do you keep a handle on your company's finances?

Questions about working together? My DMs are open. 📬