Smoothing out cash flow woes for a fast-growing web development business
This web development company was growing fast, but the cash flow issues were beginning to put a squeeze on things. My approach was to implement a high-level cash flow tool to sort out weekly decisions and adapt to changes in income.
We established a clear understanding of the tool, how much it was used and who’d be using it. We agreed high-level assumptions on future income and figured out what additional commentary was required to make use of it.
The end result was a fortnightly high-level cash flow analysis, one that afforded clear planning on when to pay creditors. As such, the business was able to propose realistic payment proposals to creditors and built trust with suppliers. Being in control of the cash flow enabled the owner to spend less time managing cash flow on a day to day basis and focus on driving the business forward.