In this DIY cash flow solutions overview guide, whether you are a startup or an established business, I am going to share with you, how you can go from experiencing cash flow constraints to building cash flow surplus, so that you cans solve cash flow problems.
As a part of the series on cash flow solutions, first I am going to cover, the cash flow constraints you are currently experiencing.
Then I will provide you areas you need to pay attention so that you build a cash flow surplus.
All of this using my proprietary cash flow system.
I’m Shishir Khadka – a chartered certified accountant over the last two decades working with small business owners and entrepreneurs based in the UK reaching £53.8m annual revenue, turned the cash flow specialist.
Let’s dive in.
There are three main areas you need to master, if you want to have a cash flow solution to your cash flow needs.
- Cash Flow Constraints
- Cash Flow Surplus
- Cash Flow System
Let’s look into one by one.
How to deal with cash flow constraints?
From my experience working with many small businesses, if you are always feeling the strain of cash flow, then you need to pay attention to these areas.
- Financially Unaware – You are missing cash flow clarity
- Cash Flow Tight– Business is running, but barely covering day-to-day operations – There is no extra capital to reinvest in business growth or withdraw as dividends.
- Scaling your business – Cash generated from operations is not enough to fund the next level business growth.
- Financial Resilience – Not able to sustain seasonality, unexpected expense from the supplier, tax , business loan repayments increment, late payment from a client.
Depending on your current cash flow issues you can go deep dive into one of the four cash flow constraints you are experiencing right now as mentioned above.
How To Build A Cash Flow Surplus ?
From what I have seen working with small business owners and entrepreneurs as their accountant and cash flow advisor, there are three areas you need to be aware of :
- Cash Flow Clarity – Understand your current cash position, identify cash flow bottlenecks and devise a plan to action to improve cash flow.
- Cash Flow Control – Become financially savvy to keep more cash flow in your business to ensure financial stability.
- Cash Flow Creation – Create consistent positive cash flow without over relying on sales revenue covering short-term loans to financing options.
Depending on your current cash flow situation, you can go deep dive into one of the three areas I mention above as a DIY cash flow solution. These are the same strategies, I advise and implement in my clients business to improve their money situation.
Cash Flow System- To streamline to go from cash flow constraints to cash flow surplus
Once you are fully aware of cash flow constraints and cash flow surplus , then it’s a matter of how to go from cash flow constraints to cash flow surplus fast in a systematic way.
I will share with my process, my cash flow system- The Cash Flow Maximiser Matrix.
Your Next Step
You have two options.
Learn DIY Cash flow solutions
You can go through entire DIY cash flow solutions guide and implement solutions to cash flow problems you are currently facing. Provided you implement the strategies I share with inspirations from other small business owners just like you based in the UK, you will improve your cash flow.
Contact Us
You can fast track your results, save the time and hassle of doing all the hard work, by reaching out to me and my team to provide cash flow solutions.
We can do followings for you:
Review credit control to ensure invoices are paid on time
Build cash flow forecast to to identify potential cash shortfall on a short term basis.
Review current working capital cash in hand requirements to cover paying suppliers , VAT, repay loan repayments.
Here’s the link to book the call.
