Whether you have your structure or not, the next thing to do is sit down with your accountant and solicitor to get advice on what to do next.
Maintaining positive cash flow can be challenging for small businesses, whether you’re just starting out or have been running your business for years.
Many entrepreneurs operate with their business processes and systems in their heads. They know what they need to do each day and the way they want to get things done.
At some point in its lifetime, every small business suffers from cash flow problems. The trick is to think ahead and figure out when these problems are going to arise, so you don’t have to unexpectedly postpone a purchase or hurriedly seek out additional finance. This is where cash flow forecasts come in.
Before you go down the path of seeking capital from outside your business, identify any other ways of raising capital. For example, do you have any savings (either in the business or you personally) that you could use? If you have unused assets in the business (machinery that’s not used very often, buildings or excess stock you could quit), then weigh up the advantages of selling these first.