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  3. Managing cash flow

Buying IT for your new business

From accounts software to building a website and sending emails, your business will need IT. Discover how to buy the IT kit your start up needs.

Commercial premises

There are many types of premises to buy, lease or licence from shops to warehouses. Discover how to find commercial premises for your business.

Start up business ideas

For a successful business, you need a viable business idea, the skills to make it work and the funding. Discover whether your idea has what it takes.

Basic IT security

IT security for a start up does not need to be complicated or expensive. Here are the steps to follow to make your business safe.

Premises security

Your cash, stock, equipment and data can be targeted by criminals. Insurance and robust security can help. Learn how to keep your premises secure.

Set up a business

Forming your business correctly is essential to ensure you are protected and you comply with the rules. Learn how to set up your business.

Business planning

Learn why business planning is an essential exercise if your business is to start and grow successfully, attract funding or target new markets.

Start up funding

It is likely you will need funding to start your business unless you have your own money. Discover some of the main sources of start up funding.

Tax and National Insurance

Businesses and individuals must account for and pay various taxes. Understand your tax obligations and how to file, account and pay any taxes you owe.

Business law

Businesses are required to comply with a wide range of business laws. We introduce the main rules and regulations you must comply with.

Sales and marketing

Marketing matters. It drives sales and helps promote your brand and products. Discover how to market your business and reach your target customers.

Employees

Your employees can your biggest asset. They can also be your biggest challenge. We explain how to recruitment and manage staff successfully.

Grow your business

Few businesses manage the leap from start up to high-growth business. Learn what it takes to scale up and take your business to the next level.

Managing your cash flow - checklist

Read our list of tips for controlling your cash flow, including chasing debts and avoiding the dangers of overtrading

  • Regularly monitor and revise your cash flow budget to anticipate potential cash shortages.
  • Invoice promptly and chase outstanding payments vigorously. Invoices for business-to-business transactions must be paid within 60 days, unless an alternative payment period has been agreed. Public-sector bodies must pay invoices within 30 days.
  • Consider charging interest on late payments and debt recovery compensation charges to deter late payment.
  • Develop warning systems to identify where delays or unexpected changes could cause the business to run out of cash.
  • Be prepared to trade off profitability and other business objectives when your cash flow position is, or may become, critical.
  • Minimise the amount of cash owed to you by restricting credit limits and payment periods and consider factoring your debts.
  • Put customer accounts on stop once they reach their agreed credit limit and do not provide further goods or services until they have paid what they owe.
  • Generate short-term sales income by offering incentives to bring forward purchases and discounts for cash payment.
  • Cut unnecessary costs and shop around for competitive prices; negotiate generous payment periods and short delivery lead-times.
  • Use your stock control system to minimise cash tied up in stock.
  • Assess your cash flow position before committing to any new expenditure or increases in overheads. Consider using leasing to finance assets.
  • Be prepared to turn down orders if you cannot finance them. Negotiate deposits or stage payments for large orders and long-term contracts.
  • Build relationships with financiers and suppliers so they will extend extra credit when you need it.
  • Arrange additional financing before you need it. Seek equity investment if cash flow will not safely cover interest payments.
  • Sell unproductive or superfluous assets and discontinue business lines with negative cash flow.
  • Take into account short-term fluctuations which do not show up on monthly or weekly budgets.