Business Financial Help
Let us help you determine whether your needs are best met through financial training or by dedicated financial support…
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Profitable Business That Ran Out Of Cash
Profitable business with a history of strong growth. Despite invoice factoring, persistent and mounting cash flow problems now looked like they would spell the end for the company. Could anything be done to avert failure?
- … that profitability and sales growth does not guarantee a financially sound business.
- … the potential pitfalls of invoice finance facilities unless you really understand how they work.
Something Changes & Business Starts To Go Wrong
Loss-making business with declining sales in need of cash flow help following an ill-conceived downsizing exercise. Then a director’s mis-judgement pushed their bank over the edge. Their financial problems were suddenly acute.
- … that downsizing is often ill-conceived and the implications on cash flow poorly understood.
- … a finance team focused on book-keeping is just not enough when a business hits real cash flow problems.
- … just how crucial it is to have the ongoing support and confidence of your bank (or other lender).
- … that when you are really at a low ebb, never under-estimate what else will go wrong.
Buy-in To A Turnaround Runs Out Of Money
A buy-in to a turnaround situation. Beset with financial problems from the start, the overdraft facility, while generous, proved too small. Then overnight their facility was cut by £40k and cash flow pressure became dire.
- … if you buy into a turnround situation you need deep pockets – it could take MUCH longer than yoiu hope.
- … do not want to wait for the Bank to blink first. When they do… the outcome is largely out of your hands.
- … you need to learn to talk the Bank’s language and engage with them on their terms.
- … only ‘tough it out’ if cash flow forecasts (in principle) support your cause.
Lots Of Work But No Profit And No Cash
Getting business was never a problem but making money from it had. Previous cash flow crises had been averted by taking on more work but the underlying issues remained. With intense creditor pressure plus overdue VAT & PAYE, things were coming to a head…
This shows…
- … it’s often not about being busier or working harder.
- … it’s not simply a matter of cutting costs.
- …. unless you can see the overall picture you are literally ‘flying blind’.
- … if you are concerned about or struggling to manage your business debts ulitmately you need to understand how to generate cash from trading (quickly)… or go bust. It can be done.
Impact Of Losses On A Small Retail Business
A small loss-making music retail shop. The directors sought to gauge if there was a future in this business in which they had invested so much. Rather than just guess, could we do a financial viability review to ensure they made the right decision…
Learn from this…
- … that generating cash last year tells you nothing about this year unless you understand how cash flow works.
- … that you cannot overlook small adverse trends. Given time, they will undermine your viability.
- … that you should not ‘throw in the towel’ lightly. Get objective targets for the changes you need to make.
Can Combining Wholesale & Retail Make Financial Sense?
An established wholesale business but with cash flow reflecting the ups & downs of recent seasons. Planning a first step into retail, with many up-front costs, what were the baseline targets needed for the cash flow to hold-up and not jeopardise the existing business?
This shows…
- … that a small business CAN prove incredibly complex to run day-to-day.
- … the array of financial challenges that a small business can find itself having to address.
- … the risks you face without basic financial systems you can count on.
Struggling To Make A Web Retail Business Financially Viable
A web-based retail business which, despite building up a good sales base, has never been able to pay the owners a living wage. With a history of small but stubborn losses, should the war-weary founders stick with it or throw in the towel and move on?
This illustrates…
- … just how intractable and draining financial problems can become.
- … the challenges a niche-retail business presents.
- … the financial information and data that would help develop a sound sales and marketing strategy.
Builder Needing To Borrow With No Asset Security & Poor Cashflow
With a history of rapid growth and all of his personal money already committed to the business, the owner was really struggling to access additional funds to remedy steadily mounting cash flow problems in the face of a downturn in trading. With so much at stake, was there any way forward?
Here we see…
- … the value of government-backed schemes to facilitate lending to entrepreneurs with no asset security.
- … the importance of an able and willing Bank Relationship Manager (hard to find these days).
- … how vital it is that you can present a viable and workable proposition to your lender.
Worth Investing To Refurbish A Retail Bakery?
Struggling independent bakery retailer. Proprietor considering £50k refurbishment to upgrade the premises and improve its outlook. With crunch-time for a decision looming, how could he tell if spending this money would prove worthwhile?
Retail Shop Capital Investment Appraisal
Key points are…- … that entrepreneurs think in terms of months (not years) and typically want to evaulate things in these terms.
- … have no interest in, or time to learn, or attempt to apply, concepts like Net Present valuye or Internal Rate or Return.