Business owners often get trapped because they don't heed the messages their business sends and they don't pay attention to basic principles. The following checklist represents a clear set of danger signals - situations and issues - that have a clear and negative effect on cash flow.Take a few minutes under the harsh, cold light of reality to ask yourself how many of the following danger signals exist in your business and then evaluate carefully their implications:
Perhaps the greatest danger of all: not having adequate records and/or financial skills to be able to answer all of these questions - or not having any questions to ask! Planning is the vital element, especially when we're talking about cash flow. Danger signals are just that - signals. The longer you wait, the fewer options you will have. Now is the time to gain control and keep it. Get yourself ahead of the game, sleep better at night, and get in a much better position to weather whatever rough seas lie ahead.
Editor's note: Steve LeFever and Dave Ashcraft are, respectively, Chairman and Vice President of Business Resource Services/Seattle. For over 10 years, they have provided financial training, performance benchmarking, and accountability/bankability modeling for franchisors and franchisees. Contact them at: 800.488.3520 x14 - or firstname.lastname@example.org. Please email them with any suggestions for topics you'd like to see covered in future columns.
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