According to a survey by Platform Black, 89% of small and medium enterprises are concerned about how their business will grow in 2014. Many are unsure of what the future holds and have even admitted this worry is bigger than that of cashflow problems over the Christmas period. Furthermore, 56% of survey participants are anxious about cashflow issues over 2014.
Even though there are plans to cap business rates with the government’s support, many SMEs are still sceptical about the future of business lending and are worried about their own company for 2014. The biggest problem for SMEs is accessing support and funding from the bank with some companies unaware of alternative options. With predictions of economic growth in 2014, businesses are unsure how they will be affected as well as how, if at all, their company can expand.
The good news is there are increasing ways to secure finance outside of the bank which may be a comfort to some. Insolvency rates have also been gradually falling over the last year, indicating the power of restructuring, reorganising debt and turning around a viable business.
Good cashflow models are essential to keep on top of day-to-day finances and are key if you need to cut costs in your business, as you’ll be able to point out and cancel the non-essential costs. Ensure you know everything going in and out of the business by getting a good grip on cashflow. Our free daily cashflow template can be downloaded here