No business blooms on fear, but any new start-up, company or project should not arrogantly be blind to their weaknesses. True business strength is developed from understanding, facing and assessing the potential faults in any venture, then working on reasonable and effective strategies for managing these faults.
Before any business can flourish, its owners and managers need to take some time to stare into the abyss. While it is easy to envision ambitious and grand schemes of success, it can be tougher to make a sober analysis of all the ways things could go wrong. But when you do so you may notice that these five problems are not only hazardous, but also endemic to many SMEs. Yet once you are aware of them you can seek the appropriate expert help to face them head on, with zeal.
Insecurity
Much of the fear that dwells in the mind when you are about to embark on a business venture is tied to insecurity. Here is where expert firms such as Close Invoice Finance can step in and help. What if my meagre assets are not enough collateral to invest in this venture? What happens if my cash flow becomes strained and I am forced to resort to potentially strangling credit? What if, down the track, this credit becomes harder to procure just at that moment when growth is vital? These firms offer pinpoint and creative solutions outside of the banks.
Poor cash flow
Any SME needs to envisage a time when poor cash flow will frustrate investment and stifle profit. Firms like Close Invoice Finance are professionals in making sure you have a wise and adequate plan to ensure money keeps coming in – not only to pay for expenses but also to plan for growth. They can analyse just where you may be going wrong and also provide innovative yet reliable ways to finance your investments at moments when your cash flow is at its the weakest.
Late payments
One of the key causes of poor cash flow, which firms such as Close Invoice Finance target head on, is late payment of receivables. Any SME must plan ahead and conceive of a time when they have made many sales and done solid business but the payment for their goods and services is delayed in such a manner that they do not have cash flowing in to meet expenses, pay off credit or invest in growth. Invoice discounting and factoring can provide near to instant income and solve the problem of inflexible payment schedules.
Bad Debt
Finally, companies like Close Invoice Finance can assist with the ever-looming monster of bad debt. Often, SMEs will respond to problems of cash flow by borrowing, but this can lead to high interest loans and, ultimately, bad debt. These firms provide generous yet reliable solutions, such as asset based loans, to help business cope with this problem.
Mark Tull Money 