Channel Eye has joined forces with Royston Guest, leading Business Growth Coach and CEO/Founder of Pathways Global, in our series, ‘Ask the Business Coach’.
Cash is essential for growth, and a shortage of it stops businesses from reaching their goals.
Yes, you need enough working capital to cover bills, salaries, and other regular monthly costs, but that only helps you get by each month. To expand your business into something bigger and more robust, you need extra cash to fund growth. And if it isn’t expanding, then it is either stagnating or, worse, falling behind.
Three key takeaways
- Cash is the lifeblood of your business.
- Understand your debtor-to-creditor ratio.
- Maintain a monthly cash flow forecast.
Episode timestamps
- [0.39] You should have a debtor strategy, and critical factors to include are the payment terms you put in place with your clients, i.e., your debtor days, staged payments, payment chasing, and creditworthiness.
- [3.45] You should have a creditor strategy, and a key metric is your debtor-to-creditor ratio. Understanding how much cash you receive versus how much you spend is essential for your business.
- [4.40] You should have a strong cash flow forecast to help you predict peaks and troughs in your cash flow.
Do you have a question for the Business Coach?
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Missed a previous episode? Catch-up and watch the series here.
