(Episode 610; 11 minutes 24) Christmas is probably a more problematic time for Aussie businesses than in most other parts of the world. We have long summer holidays where cash flow can be a real issue. Your debtors might have closed up shop or are reluctant to pay up quickly because they too are struggling with a money shortage.
Michael Fingland from business turnaround specialists Vantage Performance says you need to start planning straight away for how you will manage cash over the next three to four months. You might find the banks are less forthcoming than previously when it comes to applying for an overdraft to get you through.
Michael has four ways for you to ensure you're still solvent and operational early next year:
- Secure some additional working capital
- Look at selling non-core assets
- Communicate expectations to your customers
- Stress test your business