OK, here is the simplest thing I can say, you turn your business around by making a profit. All you have left is the problem of time.
Time is now your problem, and I will get to the key ways to turn your business around, but remember, when you start making a profit, it doesn’t mean that your creditors, the bank or the taxman will wait for you to catch up. If you can turn your business around, then time becomes your enemy.
Turning a business around, or running a business should have one financial goal, and that is to have money – and as much as possible, left in the bank account at the end of the day when you have paid everyone. Paying staff, creditors, the landlord and the taxman and having something left is the simplest goal for most of us.
Tech companies excluded of course – will twitter ever make money?
The combination of making a profit (and getting the cash from that profit into a bank) , dealing with the taxman, building a better relationship with a lender or finding alternative finance, dealing with suppliers that have you on tight terms, getting paid by clients or even court action all adds up to a pile of things that can distract you from actually making the changes in a business that will give you what you went into business in the first place – more, for your hard work.
A short term cashflow problem can become a case of insolvency where you just hang on and hang on.
Still, with all these problems you may be sitting on a great business.
While your creditors hate you, your clients may love you and what you do. Your clients may trust just you to do “the job or provide the service or product”.
If you know you have a great business, then talk to us at Your Business Angels and we can find a way to see you through your problems and move forward. Give us a call or email us.
We will love to hear from you.