Last Leg

Even though the economy is showing signs of improving, those businesses that have been waiting for the economic turn to happen may be on their last wind.  Some signs of this:



1. You've stretched your payables, and are now under pressure from your vendors to do something for them for a change.

2. Your banker has been patient, but lately he seems more anxious and is frequently calling you out of the blue looking for information.

3. Your payroll seems to be harder to meet every couple of weeks than it has in the past.

4. Your customers are taking longer to pay you than usual.  Thus, turning you into the vendor mentioned in point number one above for some of your customers.

5. Ordinary recurring expenses like property taxes, license renewals, and professional service fees that caused you little concern in the past are starting to pop up everywhere, and they're stressing you out.

6. Your revolving line of credit is coming up for renewal at the bank, you're not sure if your banker's "increased interest" in your business is better or worse for your chances.

7. You have no idea what kind of cash position your business has right now, much less in the future.

If any of these points sound like you, you might consider looking for help in some of your business reporting.  Calculating a breakeven for your company and a 13 week cash flow projection will help ease your fears, and give you a strong set of metrics to measure your week-to-week progress in turning the corner.  Future posts will contain some basics on these two reports, but for now, if you have questions, don't hesitate to contact someone who has experience in this area.