Worrying times for all

Take time out of the office to review if things need to change dramatically in your life and business.

One of my clients have just had to lay off all their staff – they have all been given redundancy notice.

Bad business? Unsuccessful?

No not a bit – highly profitable with a very effective team and a strong balance sheet .

The trouble is they currently have no immediate cash flow because they are builders, and while they have loads of interest in their properties, they have no definite buyers at the moment – next week or next month , they might all have sold and everyone would be smiling.

Now the bank who have been happy to lend and who have loads of asset cover have withdrawn support – an instruction from head office underwriters.

Now they could quite seriously lose their whole business in the next few weeks.

A shock to them and a shock to me – I say I am always learning and I never stop learning, and this is a good example.

The saying cash is king has never been more important than now.

Everyone needs to take time out to urgently review their personal and business finances and don’t trust or rely on your previously good relationship with your bank manager – he/she can be overruled and you could be in a crisis you were not expecting.

Get in those debtors, cut back unnecessary costs, take longer paying your creditors (if they will allow you) and plan the next six months cash flow very carefully – the fact that you are profitable will not pay your bills without bank support, and they are running very scared at present.

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