When businesses go right, they can make your dreams come true. But when they go wrong, all your nightmares can become real.
That’s not over-stating the case, unfortunately. We’re talking lying-awake-watching-the-ceiling type of stuff here. Waking up with heart pounding and feeling the sweat on your forehead. Feeling the walls closing in and feeling like there’s nothing – nothing – you can do about it. Business nightmares – deeply unpleasant things.
And it all seems so very far away from how things seemed when you first started. When your business was a blank page instead of the giant scrawling mess that it’s turned into. It’s never nice to have a business nightmare on your hands.
So the big question is: how do you stop this happening?
- Don’t run out of money. Treat your cash with the same amount of care and attention that an astronaut gives to their oxygen. Cash buys you time. Cash lets you recover from mistakes. Cash is a cushion. Cash lets you invest in growth and equipment. Cash meets those unexpected emergencies. DON’T RUN OUT OF CASH. Am I getting through? Can I make myself any clearer?
This may mean slowing your growth plans, or choosing to go in one direction rather than another. But the peace of mind you’ll get by having a decent cash buffer – it really is something else. - Look after yourself. You are going to experience stress. There’s no avoiding it. It’s the flip side of the coin. The price you pay for success. You see your employee sitting over there in the corner at their computer? They look relaxed, don’t they? Content. Just biding time until 5.30.
That’s not your life. They don’t get the same stresses because quite frankly they’re not in line for the same rewards.
So look after yourself – get exercise, go on walks, take a break from the desk. And don’t become a slave to notifications from your phone. Be brave enough to go out for a night without it every now and then. Switch off. You’ve really got to, or you’ll get ground down. - Be organised
Stop living on the edge. Have systems that work. A filing system that’s up to date and makes sense. Good, up to date software helping you run your business (Xero, anyone?). That way, when a question comes up, you can easily and quickly get what you need, instead of hunting under piles of month-old paperwork for it
- Beware Debt. Borrowing may sometimes form part of a
well-thought out cash management strategy. But it should always be approached carefully and with due consideration. Debt takes away your ability to control your own destiny. It puts obligations on you and your business that you can do without. It creates cash leakages from your bank account. Think carefully. - Don’t run out of cash. Yes I know I’ve already said it, but if anything needs repeating, it’s this. Nothing – NOTHING – will help prevent business nightmares more than managing your cash well. Nothing even comes close.
If you’d like to talk over your business plans, or have a nighmare you could use some help with, don’t hesitate to give us a call on 01634 540040 or email me at: andy@aktax.co.uk
We’re here to help.
