WAP031 - U R OK

U R OK - Wise Accounting Podcast Episode 30 As a caveat we are not in the business of motivation, but we are in the business of ensuring business success and sometimes that means reassuring people. So let us reassure you too, things will be ok. You just need to stay true to what made your business successful previously, monitor your cash and heed the key performance indicators below and discussed: Debtor days - get these down as low as possible. If you are not decreasing debtor days then you are bank rolling your customers and clients. Personal Business Withdrawals - ensure these are not more than the business can afford and maintain. This may mean a (dreaded) pay cut, but could be for the long term survival. Decrease illiquid assets - keep assets that can be easily converted to cash to allow your business to "survive" challenging times. Assets that can be readily converted to cash are worth a premium during tough times. Monitor overhead expenditure - especially labour costs. These need to be at least representing the same % of sales as they have previously; however decreasing will allow you to increase cash flow further. No replacement for hard work - this may mean more hours, more work, and less free time...for now. Cash flow, cash flow, cash flow - these are needed and should be referenced frequently; to compare your business to how it is going and how you thought it would be going. This could be the most important aspect of your business and should be maintained regularly. Above all else, do not get disheartened, you are not alone, and if you stay true to the business foundations you can adapt, survive, and then in happier times your business will be designed to flourish. If you need help, guidance or anything else, do just get in touch with us and we will be happy to assist.