Zap A Cash Crisis
9.3 | Reality check: averting disaster
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- Have you committed only to what you can afford? Are you avoiding over-financing the business?
- Are you monitoring profits against those commitments?
- Are you keeping costs to a bare minimum if growing organically?
- Are you reinvesting profits effectively? For example, when experiencing a run rate of business or a seasonal upsurge are you focusing on keeping costs down and absorbing the profits so you can reinvest without over-stretching the business in less profitable periods? Or are you incurring new staff or premises costs and scaling growth because you have guaranteed income secured (via a contract)?
- Have you focused on building relationships with bankers and suppliers?
- Have you reviewed each financing option available to find out which is the most relevant and cost-effective to use?
- Have you reviewed the cost of bank borrowing and the leverage you have (your debts and your ability to repay them?)
- Are you aware what is coming in and going out of the business in terms of cash on a daily basis? Have you effective forecasting tools in place?
- Are you focusing on lead generation and closing sales?
- Have you increased your prices, reduced costs and increased sales targets?