Business Growth Tips Amid Crisis by Business Coach Ratish Pandey — Part 2
Thriving in a Crisis is something we all would want to do.
So, the question is, is it feasible? Yes, very much so.
Business Growth in the face of Crisis is the theme of this series of blogs. In case you missed the first chapter, you will find it here.
So, what is step two in the journey of growing Business in the face of Crisis?
The second key area of Focus is CASH.
Seems like the obvious, yes?
The first area of focus is the Cash Gap.
What do I mean by cash gap…?
Cash gap is the gap between the time you take to recover money from your debtors and the time you take to make payments to your creditors.
As an entrepreneur, the aim must be to reduce this gap.
The next step is to find ways to be more Cash efficient.
What does that mean?
It means ensuring you have enough liquidity to manage the hard times.
It entails taking stock of your fixed expenses in your Business.
Depending on your selling cycle and the type of Business you have — b2c or b2b, see if you have enough Cash to weather adversity in the future.
How do you do that?
Step one measure is efficiency in your systems- how effectively are you able to eliminate errors in sales, delivery, and production — as these errors would make you cash-in-efficient. Fix your system to remove these errors.
Step two — keep a tab on your Cash. Incorporate a reporting system that updates you on your Cash holding on a daily & weekly basis.
Listen to Business Coach Ratish Pandey and see your business thrive even in trying times.
I trust you found that interesting. Keep a watch on the following Key fundamentals to watch out for during these times of crisis.