If there is one financial aspect that affects businesses, at every stage of their cycle, it is cash flow.
From launching your business right through to making decisions around the sale of a business, cash flow influences your ability it to pay debts, reinvest, and to build certainty against future financial challenges.
Here at Hub Advisory Group, we are experienced in all aspects of business accounting and financial management, however, have a particular interest in assisting businesses as they move into their growth phase – helping them to innovate and to reach their goals with great planning, processes, and the right support.
Today we’ll look at cash flow and the importance of managing it during the growth phase of your business – as you begin to reach a broader customer base and see an increase in your sales or revenue.
Greater revenue stability and profit mean that positive cash flow is increased but it must be managed wisely to propel your business forwards.
As you experience increased demand you will likely need to hire additional staff, which will mean a higher wage budget. This is often coupled with increased payments to suppliers to deliver your service. All of which will impact cash flow in your business.
So, what are some of our simple tips for maintaining positive cash flow as you move into the growth phase of your business?
1. Clearly outline your business goals
2. Forecast and estimate what is required to achieve your business objectives
3. Plan and resource for change (and emergencies) in advance
If you’d like to speak with Hub Advisory Group about our range of business accounting and business advisory services, we’d love to hear from you.
Call 4926 8000 – here at Hub we love working with business owners and seeing them succeed.