The ONE thing that can kill your business

29th July 2020

You know the ONLY thing that ever kills a human being?

The moment when their heart stops.

I mean, technically, their body may have been brought to that point by any number of factors – disease, injury, old age…

Their body may have suffered any number of failures.

But as long as their heart is still beating, they’re still alive.

In just the same way, there’s only ONE thing that ever truly kills a business.

The moment when you run out of money…

You can survive practically any other disaster – from losing your staff to reputational damage or even terrible service – even if they put your company in mortal danger, cause you endless sleepless nights and make everyone involved miserable…

…As long as you have enough money left in the bank!

But that moment when you have no money left to pay your bills, your staff, your suppliers, it’s game over. Your business is insolvent and will most likely end up being liquidated, and there’s no coming back from that.

Now, if you’re struggling right now, you’ll be extremely aware of this danger – because you know that money’s tight and that the economic conditions are difficult.

But if you’re one of the many companies that is actually doing well right now – and make no mistake, there are many - you’re most likely not worrying too much about money…

…Although you need to be.

You see, growth takes money. Often a lot of money.

If you’re a retailer experiencing more demand, you need to invest in more inventory.

If you’re a manufacturer, you many need to invest in new equipment.

Service-based companies – and everyone, in fact! – may have to invest in new staff members… New IT… New SaaS… New training… New marketing…. And so much more.

In short, growth is expensive.

And you usually need to pay for all these things before your clients or customers pay you!

Plus, we are in an unusually sensitive economic moment in time…

For the past few months the economy has been in a deep freeze and both businesses and individuals have been artificially supported by the government financially.

As we come out of lockdown, it feels like a moment of celebration but it’s actually the moment where redundancies, business failures and financial difficulties may become more apparent.

So if you’re doing well right now, this might be the moment where your clients start to find it hard to pay – or to pay on time…

No matter what contracts they’ve signed with you or how reliable they’ve been in the past, you could find that the money they owe you is just not forthcoming.

Put all these together, and you’ll see why you need significant working capital – both for growth and simply to survive right now.

As business owner, making sure you have money in the bank (not just on paper) to manage this situation must be your number one priority…

And your money can’t be tied up in stocks or buildings or anything else. It needs to be available to you to use.

If you don’t manage your cash situation carefully, your growth could stall (best case scenario) or you could find the beating heart of your business – your cash – has stalled...

…And that is the one thing that will incontrovertibly kill off your company.

The only difference between you and a company that has been struggling throughout the Coronavirus crisis will be that you didn’t see the end coming.

That won’t happen when you work with us.

We look at your cash flow every single working day to spot issues well in advance.

Plus, we work with you to understand exactly how much money you need to finance your growth, help you get that money in place – and make sure it is spent carefully and appropriately thereafter.

This isn’t a simple “accounting” service where we do your accounts for you once a year.

This is a very close relationship…

As your outsourced finance department, we take care of your company’s financial health, setting up the systems and processes to ensure that your finances are always managed smoothly.

And we work intensely with you, to help you make better financial decisions for the future of your company.

If you’re ready to bring your financial management to that world-class standard, click here or call us on 01279 647 447 to get in touch today.

Looking forward to hearing from you.

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