Pre-pandemic seems such a long time ago.
We had a set and stable economy, rules in play that we understood and had learned to abide by.
In the space of a few short months we now have a new normal which has managed to turn what we have known on its head.
Decimated bank accounts have been a big source of stress for the business community.
Cash flow is the blood flow of business.
Like our hearts pump blood to all corners of our bodies through our veins, cash flow does the same through our businesses.
We may have experienced a significant blockage in our business arteries or even a company heart attack.
How then does our business stay alive, stem the blood loss, and get the business heart pumping at full strength again?
- Commit to learning
More than ever, our margin for error is reduced, or in some cases eliminated.
Good sales revenue may have hidden a multitude of sins.
Running your business by your bank balance may have worked by luck previously, however, knowing how cash flows through your business is more important now than ever before.
Having an up-to-date cash flow forecast for your business is critical.
This will help you see any impeding challenges, then understand what you can do to change your position.
Remember, sales is vanity, profit is sanity, but cash is king.
- It’s what is above the shoulders that counts
Our world is changing faster than ever before, the need for planning, thinking, and charting our course is a far greater part of business now then previously.
The ability to think of our future direction is difficult, due to the stresses we are under.
Meditation, time out of our business, and away from it, are key aspects of allowing our head space to calm and give us time to think through possibilities.
Be kind to yourself – these are unprecedented times – and look for the opportunities that you can create!
- Be positive and perceptive
It is unlikely businesses will be able to cost-cut their way out of this crisis. It’s more likely success will come from selling your way through it.
Different parts of our country are at varying stages of opening again.
Customers are so excited to be out and about, and it’s time to celebrate with them.
Our new normal will inevitably have some restrictions, however it’s not the time for our thinking to be “glass half empty”.
Our team will reflect us and all the emotions we are carrying.
They will inevitably pass this feeling on to our customers.
This is the time for us to train our customers how to do business with us, how to spend more whilst with us, and how to come back to us more often!
- Keeping it smart
We can all do stupid stuff when we are stressed.
Are we running too tight or too loose?
Having a constant handle on our numbers should give us a good indication.
Our arteries need to be a little bigger than the blood flowing through them to allow for changes.
The same applies to our business; we need a little extra capacity for our business to grow.
Having said that, keeping a keen eye on our numbers is an absolute necessity in these times.
I’m not talking a Profit and Loss review halfway through the following month, I’m talking daily reviews, at a minimum, of the key drivers of your business to constantly navigate the new normal.
The smarter we are the stronger our cash flow becomes.
- Small wins accumulate
It is easy to become dejected, disillusioned, and disappointed when times are tough.
Look for the wins, however small, to build your focus.
Success builds success, and it is most likely led by taking time to congratulate yourself on every win your business has.
It can be a win in sales, service success, or handling customer challenges.
Celebrate and focus on your wins.
Not only will this develop your habit of winning, it will also change the chemical balance in your brain.
You will then look for the wins and start seeing a clearer pathway forward to stronger cash flow.