How to plan for a holiday from your business!
Whether you are heading into the summer holidays, or just planning to take a break (and congratulations because a healthy business means work-life balance), it is important to keep your cash flow under control. This means pre-planning and being proactive.
When you are not in the office, there are still overheads and wages that need to be paid. If taking time off means that less cash will be coming in, it is essential to plan for this period to ensure that there are sufficient funds to cover all your costs. You need to make sure that you have a clear picture of your payroll and any other fixed expenses that will need to be accounted for.
If there is even a slight possibility that there could be a cash shortfall, take this problem head-on. Talk to your suppliers and creditors to see whether you can make an arrangement, so that your staff will not suffer.
5 Tips for Minimising Cash-Flow Stress
1. Invoice early
Send any invoices that you can, and in advance if possible. Perhaps consider whether you have any regular clients or customers that you could offer a retainer or similar deal to if they book services or make a purchase from you in advance.
2. Chase payment
Use this opportunity to chase up any outstanding payments by talking to clients, because strong communication and relationships matter.
3. Talk to suppliers
A little honesty can go a long way. Perhaps they can extend a line of credit for your payments to them. In most cases, a good supplier would rather offer a little flexibility to keep an ongoing business relationship.
4. Review your costs
It is also a great idea to do a general review of your expenses. Business costs can creep up and it is a great idea to make a time to check your expenses regularly, regardless of what your financial situation looks like. Review all of your regular payments and subscriptions as well as your upcoming costs. There may be travel, functions or purchases that you can opt for a more cost effective alternative.
5. Talk to the bank
If cash flow is tight, make sure you have conversations early so you have everything in place to see you through.
I NEED HELP!
When you’re planning for a break, this can be a tricky process to navigate on your own. If you want some assistance to plan a holiday from your business, we can help you alleviate your cash flow worries. Our MB+M Office is currently closed, but we would love to offer you our support when we return on the 7th January 2019. Simply send us an email and we will contact you in the New Year!