Some pre-planning, whether an experienced or a newbie business Dad will stabilise your cash flow, taking the pressure off you and your business so that you can be present with your family.

How does terrible cash flow affect you?

The impact of cashflow problems affects you both personally and in your business daily. Still, you may only notice these when you think about your day-to-day.

  • Poor health – No time can result to look after yourself leads to eating convenience food and declining fitness levels
  • An unhappy life – No time or money for fun activities with friends or family results in a life focused on work and worry
  • Working too many hours – Sometimes, the only answer to getting you out of a cash flow crisis is to put more work in
  • You become isolated – Not wanting to talk about it to friends and family, you start to shut yourself off from social events
  • Poor sex life – Stress kills your sex life because of a lack of drive, time and energy for those intimate moments that every relationship needs

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Signs that lead to lousy cashflow

Ask yourself if any of these signs ring true for you. If they do, you may be in danger of your cash flow suffering in the future.

  • A lot of people owe you money
  • Going into your overdraft –
  • You don’t have a cash buffer –
  • Limited or no savings
  • Mixed personal and business money
  • You don’t know your monthly financials

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How to avoid a cashflow cave-in

Once cash flow collapses, it’s often too late to get it going again to save your business and stop it from impacting your family. Keep these tips in mind so you can stay two steps ahead of your cash flow and rest easier at night.

  1. Get to grips with your financial numbers
  2. 6-months Business Forecasting
  3. Plan your sales pipeline
  4. Have a mix of clients
  5. Improve your payment terms
  6. Build a cash buffer

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Ask yourself

  • What can you do tomorrow to improve cash flow?
  • Do you know your monthly numbers in the business?
  • Are you in danger of a cash flow collapse, or do you not even know?

The takeaway

In essence, poor cash flow puts you into a permanent fight or flight status where your time suffers, and all you can think about is work and getting money in. Focus more on your financials to improve your cash flow and avoid future hardship.