How many 1’s does it take to materially impact your business’s cash flow?
- 1 customer?
- 1 bank holiday?
- 1 new product launch?
- 1 new employee?
- 1 more repeat of your budget cycle?
- 1 day breach of your loan covenants?
- 1 more prayer?
The answer is that there are 1000’s of 1’s that can impact financial performance. But what are they, and what are you doing about them?
The factors affecting the biggest and most complex businesses are often exactly the same as those impacting a smaller or start-up business. What differentiates these two extremes is the ability to identify, react to and take the necessary actions in order to make the necessary change(s).
By no means a unique idea, it is nonetheless surprising how many businesses fail to think clearly about the primary drivers of profit and cash flow. Take the test for yourself. Click here and input your business information into this simple cash flow calculator to find out for yourself where your biggest opportunity for cash growth lies. Ignore that the calculator is shown in $. Enter your results in £, € or any other currency as the outcome will be the same.
As your business grows, other 1’s will emerge and the inter-relationships between them and the rest of your business will give you many hours for thought. But start with the basics and build your business from there.
Note: Part of the test is being able to input the data. If you don’t know the exact answers to these simple questions, contact sonar immediately! If you do know the answers but don’t have the tools or ability to effect change within the necessary time frame, then once again contact us for help before it’s too late.