Somebody, Please Stop This Ride!
A Regular Feature to Help Your Business Improve Its Profitability
Whoever said that life is like a roller coaster ride”must have owned a small manufacturing business. Lose one major customer, or even two small ones, and your accountant is screaming as you fly downward, holding your breath against hitting bottom. Land a big, new client, and your hands are in the air in anticipation of the fun ahead.
Fortunately, roller coaster rides usually last no more than a few minutes. Unfortunately, the ups and downs of running a small manufacturing business play out over a longer period of time and often overlap. This overlap often causes small business owners to focus on how to react quickly to the changes rather than focusing on how to predict them. The ups and downs are part of business life. How to identify, prioritize and respond to them on a timely basis is key to the success of your business.
Partnerships
The good news is that you and your accountant are not alone on the ride. Organizations like the Bucks County Economic Development Corporation (BCEDC) ride with you. BCEDC membership ensures that you have access to resources that can help you to increase the highs and balance out the lows in your company’s cash flow.
The Strategic Early Warning Network (SEWN) is one such resource. We provide professional, confidential turnaround consulting services to small manufacturing companies at no cost to the company through our partnership with the Department of Labor and Industry.
Cash Flow Modeling
Real-time cash flow monitoring is one of the most effective tools to help you to identify, prioritize and predict changes in your business. Using your personal finances as an example, the chances are good that you have an excellent handle on your personal checking account. Your bank and your computer give you instant recognition of the deposits, withdrawals, and account balances. You personally keep a close eye on the family funds and where they are going.
Your company finances, though, are a little stickier. Unlike your personal checking account, your company finances rely on a number of outside factors in order to balance. You also rely on others to tell you where your company’s cash flow is trending. Even if this financial information is sound, it often comes with a significant time lag. Timely cash flow modeling is simply a method that allows you to predict these outside factors and how they may impact your bottom line.
SEWN’s financial experience and our network of support organizations can provide you with tools such as cash flow modeling that are clear, easy to understand, and allow you to plan for the ups and downs of running a company.
Enjoy the Ride
Adequate cash flow is vital to your company. Instead of dreading the inevitable down turns in your business, let SEWN and our partners coach you on how to predict and plan for them through cash flow modeling. Email us so that we can help you enjoy the ride.