Many of us grew up in homes in which we were told it wasn’t polite to talk about money. If you’re serious about growing your business, however, you can talk about money now or worry about it forever. There are few things that drain business cash reserves like growth does. And if you haven’t got a good handle on your cash, your dreams of growing your business can crash and burn.
It’s Not Just About Getting More Investment Money
Sometimes businesses that are looking to scale up and grow assume that borrowing money—or raising cash through investors—will solve their problems. And while it’s true that an infusion of cash may be a big help, that isn’t a permanent fix. If you don’t figure out how to manage your cash, you could find yourself trapped in a never-ending cycle of borrowing and paying back—without ever getting ahead. I can tell you from experience that even the best business goals and plans can’t be achieved if you don’t have enough cash on hand to fund your growth.
Don’t Go With the Flow—Control It
Cash flow is one of the most critical parts of managing your money when you’re trying to grow your business. When you’re scaling up your business, you not only need to have enough money—you also have to have enough money at the right time. You can’t just “go with the flow” with regard to your cash flow. You have to figure out a way to control it so that the money is available when you need it.
If you can come up with the cash you need to grow internally you’re a whole lot better off than if you have to borrow it. It costs you less and you also retain more control over your operations. But improving your cash conversion cycle doesn’t just happen automatically. A great business coach can help you come up with strategies that will help you control your cash flow. Those strategies will focus on ways to improve
- Your Sales Cycle
- Your Production and Inventory Cycle
- Your Delivery Cycle
- Your Billing and Payment Cycle
These are things that any business serious about significant growth needs to pay attention to. It’s also part of the transformation process you’ll need to go through if you want to change the kind of business results you’ve been getting.
I’ve got proven tools that I’ve used many, many times to help growing businesses change the way they manage their money and get on the path that allows them to fund their growth.
By the way, if you’re wondering how you currently measure up in the control of your cash, that’s one of the areas that our assessment tool looks at. Click on the orange button below that says “BUSINESS NOT GROWING?” and it will take you through a 5-minute assessment of key areas for business growth—including cash management.