The Christmas Blackout period can bring Australian small businesses to a halt as wage bills take priority and payments begin to dry up.
With everybody looking to preserve the cash they have available, business to business transactions begin to slow down from November through to February, leaving some business owners scrambling or tying themselves up in expensive, short term loans.
Effectively, everyone is sailing down the same river, causing an industry wide shutdown. Everyone is restricting cash out flows and this has a knock on effect industry wide – everyone is chasing everyone else for money, and no-one wants to let go of it for all the same reasons.
One of the biggest threats to business growth is inventory management, here's why...
Measuring your “Cash-to-cash Cycle” (C2C), means figuring out the time it takes for a dollar to go out the door until that cash comes in from sales.
Image credit: Ex Machina (film)
Got growing pains or gaps between meeting your payroll and customers paying you?
We know these can cripple your cash flow.
SMEs know that stressful feeling when invoices get paid late
Every minute they’re not paid can hinder growth and distract you from staying laser focused on building on what you already have.