Most small business owners get told that it doesn’t matter if they have a good idea or great service but what really matters is that they have an effective cash flow or else they won’t survive. And it’s true, cash flow is the lifeblood of any business, and as such we should do everything we can to ensure the flow keeps flowing. However we’re soon to be entering the season when folks disappear off to the seaside which means they aren’t signing off invoices. It’s holiday season!
Many businesses will have reduced staffing levels during the holiday period, which means your customers won’t be paying any of their bills. In the meantime, you’ll need to be paying your employees holiday pay and not getting in any more new business as your team also head off to get a tan.
There are however a few simple things you can do in order to make this a pain free period:
- Invoice early – if you want your invoices paying before the holidays kicks in then get them out now. If it arrives on the accounts payable desk too close to flight departure time then it might not get addressed until they come back
- Chase debt – don’t wait until an invoice becomes due before chasing it, instead contact your customers as soon as an invoice looks like it might become due to get it processed before the sandcastles and camping hits
- Spend carefully – if there’s a chance you might not get all your income received before the holidays then keep an eye on your spending so your cashflow can cope, even if it means delaying the work summer social until September
But don’t forget to take a break yourself! Everyone needs a holiday!