CASH FLOW IS BUSINESS OXYGEN

CASH FLOW IS BUSINESS OXYGEN

Oxygen is something we take for granted until it runs out, then what seemed important suddenly evaporates and makes way to our newest and highest priority.

SURVIVAL…

Without Oxygen, we die… the rapidly increasing discomfort of a lack of oxygen immediately triggers an action, and when survival is in question, and your business goes into negative numbers, it comes down to how urgently and effectively you deal with this problem.

Waiting and bunkering down in the hope that the previous cash channels are going to come back online anytime soon will be a sure-fire way of dying a slow death of a thousand cuts.

This current turbulent world economy is changing the way we do business forever and has no doubt thrown at you an additional myriad of Urgent problems and spot fires to put out.

While these challenges must be overcome, and the fires put out before they get too big, your highest level of attention and laser focus must be directed to your “Business Oxygen.”

CASH FLOW your ability to measure it, enhance it, increase it, protect it and store it is your life preserver.

You must be able to accurately identify your Oxygen Burn Rate and act quickly to position yourself for survival.

The problem I’m seeing is that business owners are overestimating their “Oxygen Burn Out Time” and are too optimistic and relaxed about how long they have left.

The reality is that if you don’t cut quickly and deeply and plug the holes sooner rather than later you will have burned it up unnecessarily and once it is gone it’s GONE.

Get Clear on your financial status and short-term cash flow position.

Please understand no one is coming to save you and if you don’t have enough runway to trade out of this crisis you will not be able to take off when the opportunity presents itself.

You are going to need a Detailed Survival Plan to breathe in this unforgiving new economy

and to start with think about and consider the following

1. What are your current cash balances?
2. What is outstanding and overdue cash that you can recoup?
3. What is your predicted monthly Burn Rate assuming things are going to get worse?
4. What can you trim off your expenses both fixed and variable?
5. Do you have too many people on a leaky boat weighing it down?
6. Can you delay or extend payments to preserve your cash?
7. Are you able to take advantage of getting finance in place ready if you need it?
8. Can you sell off any unused off excess assets to slow the burn?
9. Do you have any excess fat that can be trimmed off so you can move faster?
10. Are you upping your communication to your team, suppliers, trading partners, etc.?
11. Where are the sales opportunities now for you to provide value and create cash flow?
12. Have you maximized all of the incentives offered for businesses?

It is not a time for trying to get the growth you must take care of the emergency first.

If you are suffering in pain and facing a business emergency and need immediate surgery, don’t wait until you bleed out. Instead have developed a step by step plan for recovery.

1 Stabilize and survive

2 Optimise and maximize

3 Maintain survival

4 Re-fuel your tanks

5 Look for opportunities

5 Innovate and restructure

6 Scale and Growth

If you need help in your business and want a Detailed Step By Step Survival Plan than let’s talk Book your free business brainstorming survival session here https://go.oncehub.com/glenmichaelides

I look forward to helping you soon.

Glen