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When businesses ignore fundamentals, everything else stalls.

The owner is stressed, the staff pissed off, customers dissatisfied… Potential investors put off… Consultants refuse to get involved…

Inability to get credit, which puts a chokehold on being able to scale. It’s a nightmare.

Eventually, it’s time to close the business for good. Then maybe the owner might go back to a regular 9-5, or just be plain scared and confused of what to do next, fearing the backlash of those closest to them.

What if with just a couple tweaks here and there, you could reverse such scenarios?

These nightmare scenarios CAN be averted IF you focus on and fix fundamentals.

What if with just a couple tweaks here and there, you could reverse such scenarios?

Well, speaking about fundamentals, one of those fundamentals this truth I want you to sear into your brain:

Cash is king… Cash is king… CASH IS KING.

Let’s break this down. What does ‘cash is king’ actually mean? Well look, when you’re just starting out, turnover is GREAT. Profit is great as well – and super duper important.

But what it call comes down to cash in the bank. That’s the single number that matter the most. How many dollars, pesos, pounds, dinero you’ve got in the bank.

For example, there was this company I was looking at, and they were making all the textbook mistakes I mention here. People think it can’t be this simple. But most of the time it is.

Companies come crashing down not because they aren’t making a profit; it’s because they run out of cash!

They focus on profit, they fixate on turnover, all at the expense of cash in the bank.

So the first think you need to do is get up to date with your cash flow forecasting. Get razor sharp on when the cash is coming in and when the cash is going out.

You might be really tight on cash. Then dial up your forecasting by doing this DAILY. You need to know these numbers.

Because these are the numbers your business lives and dies by. No one gives a damn – your customers, staff, suppliers – if your numbers aren’t good and you’re struggling to pay people, you’ll end up with no business.

I want to give you 3 actionable tips you can take right now.

1) Negotiate terms with credit suppliers: for example, let’s say they want to be paid every 15 days. Try and extend those terms. They’ll usually agree if you have a good relationship.

Tell them what’s going on, that you’re suffering with cash flow issues. Most credit suppliers are pretty open.

2) Get paid immediately: change your terms so customers and clients pay you as soon as possible, preferably on the spot. You might have to make an offer to incentivize this, depending on your product or service.

For example, offering a discount or some extra benefit they otherwise wouldn’t get.

3) Make more sales: focus on bringing in new customers. Sell more to existing customers. Create new offers.

Take your existing offers and create new tiers to take advantage of different customers willing to pay more for premium services increase your frequency of contact with your customers, follow-up more.

One of the best ways of fixing cash flow problems is simply acquiring a new business and utilising that with your existing one and instantly expand.

If you want to explore that – get in touch!

TOCA Group

team@toca.group
+44 (0) 3301 249949

Building 9G,
Swanwick Marina, Southampton
SO31 1ZL