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7 classic mistakes to avoid when your practice cash flow is poor by Mind Map: 7 classic mistakes to avoid
when your practice cash flow is
poor
5.0 stars - 1 reviews range from 0 to 5

7 classic mistakes to avoid when your practice cash flow is poor

1. Getting stressed and grumpy

If you start getting grumpy/stressed, everyone on your team will freak out - remember you are a leader and leaders shine under pressure

Stay calm - if you have a good business - this is a blink in time

Find some time alone and/or with your coach/closest friends/family to sort out your feelings

2. Going silent

Men are the most guilty here

Pride

Abdication

Fear

You MUST communicate with your creditors

You MUST communicate with your team

You MUST communicate with your family

It is OK to tell the truth and ask people to give you some time and space to create solutions

3. Fantasising

F.E.A.R. = fantasy expressed as reality

Don't "guess" how good/bad things are

You MUST quantify the challenge with detailed cash flow forecasts and asset/liability statements

Get your advisors and your team together and quantify everything - numbers not speculation

4. Looking for staff cuts

Having a sacrificial sacking will not solve the real problem

If there are team members who should not be there - that is based on their performance and behaviour - not on your cash flow

The right people are an asset on your balance sheet and not an expense in your overheads

Pick your best team to work closely with you on the recovery plan

5. Screwing your suppliers

Calling in your variable cost suppliers and asking for discount will achieve nothing except poor service

Reviewing your fixed cost suppliers will make pennies difference to a pound problem

Negotiate with your main creditors and agree repayment plans and regular updates

7. Refusing to invest

The problem is almost always solved by increased sales

sell what's selling

manipulate the appointment book to maximise revenue

be prepared to put the hours in for 3 months maximum

That may require a short-term investment into effective marketing to generate new business

Beg or borrow to find that capital - on the back of a well constructed and quantified plan

6. Avoiding fast failure

If the horse is dead - get off

There is nothing to be ashamed of in closing down a bad business, activity, product or relationship

you MUST consider, decide and act