When you are looking at two opposite sides of a challenge I tended to assume they would have differing causes. But this week I discovered was an incorrect assumption to make!
I asked fellow Genius' Katie Hurst and Sue Jackson to talk about what they saw as Cash Flow Challenges. Their insights were too little cash and too much cash!
One common factor they both highlighted that influenced these was the lack of long term planning.
With cash flow the immediate focus is on the short term. At the same time we need to have an eye on the future; considering what do we need operationally, what do we need to reinvest in the business and what can be taken out of the business?
Without this planning we can end up with too little cash or too much under-utilised cash in the business.
To help with the planning we have to understand the purpose of money for us and for our business; to help us know what having that cash will help us to do and what it will give us. Knowing this, along with the impact we want to make, makes any planning easier as it gives us direcion, it acts as our guide.
Take a listen to episode 14 of Every Business Counts and hear what else Katie and Sue have to share.
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