Keeping your cashflow looking healthy is an essential part in getting a new start-up business to a long-term sustainable position – but it can be more complicated than you think.
In particular, it’s important not to treat any one aspect of your business in isolation, as it’s going to take some joined-up thinking to lay firm foundations for the future.
We often speak of the value of clear and consistent invoicing procedures, along with prompt action to encourage on-time payments and recover overdue amounts.
But new research from Lloyds Bank reveals a whole range of other concerns that are causing small-business owners to lose sleep – particularly due to the nature of 21st century business.
Nearly half (47%) feel unable to ever ‘switch off’ from work, with technology increasingly making them accessible 24/7.
Almost nine out of ten (87%) think it is essential to respond quickly to enquiries to avoid losing new business to competitors.
And 30% believe they need to be contactable around the clock, regardless of when clients get in touch, if their business is to thrive and continue to win new contracts.
While the Lloyds Bank report focuses on insurance for IT equipment and other essential business technology, spokesman Damien McGarrigle makes an observation that echoes what we always say about the value of background credit checks.
He says: “It is easy to get caught up in the day-to-day running of the business, but building in time to regularly check that your business is on track and protected from any threats is a small investment.”
That could range from ensuring business insurance policies cover the full value of any essential equipment, to credit-checking new and existing customers, to make sure there are no nasty shocks the next time your invoices are due.