AD Partners Cashflow Challenge Video #4: The 3 Biggest Challenges to Your Business Cash Flow

In my 18 years running Ad Partners, I found that the three biggest challenges to a business cash flow are:

  1. Slow paying customers. Slow paying customers are the biggest killer to your cash flow. It’s great having lots of customers, but if they’re not paying you on time or at all, where’s the money coming from to pay your employees, your contractors, and your suppliers?
  2. The ATO. You have commitments to the ATO for GST and pay-as-you-go depending on the size of your business. This can be monthly or quarterly. Many business owners overlook this critical obligation whether it’s because they don’t want to admit that they are the ATO or simply because they over commit on expenditure elsewhere. This is a problem. The ATO is one organisation you do not want to get on the wrong side of. After your workers, they should be on top of your financial priority list.
  3. Overcommitting expenditure. The way you manage your stock of materials is important. The stock of materials are readily available and you don’t have to over-commit just in case. The same goes for your equipment. you need equipment to run your business but having additional equipment or just getting something just because the guy down the roads got it is not a smart business decision. Acquire the goods that you need to run your business efficiently. That is a smart business decision.
Tony Dimitriadis