We had an interesting note from Eddie Obeng from the Virtual Business School.  Eddie has been good to us since we first met back at the end of 2006 and he is the sort of man that you listen to when he offers advice.  Eddie's note read "I hope you've survived the summer (notoriously bad for the cash flow unless you're selling holidays!)".  The fact that I responded probably answered his question but the full answer should really be "Survived and grown Eddie at about 50% per month and we haven't sold a single holiday yet."  But I take his point and its not the summer itself that is bad for cash flow for small businesses like ours, potentially it's the Autumn.  For us we are entering into the third quarter since trading started and there was a small but perceptible slowing in client and prospect meeting and then September hits and we are off again diaries are filling and orders starting to flow.  So billings for this month may not reach the giddy heights (relatively) of last month, but at this stage it's looking like if we can match the previous month then we will have done well.  As Paul Briggs at IDG put this morning "Hi chaps, now we are all back to school, I thought it would be good to touch base again..."

So for the small business manager how many times have you heard the call that cash is king and managing your cash is crucial.  We have learned that for next year the way to guard against this bounce to some degree or another is to ensure that your distribution relationships are not only in place but also "primed" even if it is unwittingly to fill up the summer period.  It will be a bonus if you get the deals signed that you want, but you will build a head of steam that will give a following wind into the autumn.

The other thing of course is expand your capacity.  Take on more people and trade your way out.  We did this and the effect can be almost immediate.

Comments

There are currently 3 comments about this blog.

Edward Charvet, 9 months ago

Good luck indeed. My maths is notoriously suspect, but I know that £27.50 is a good be more that £18.25 Woo Hoo we are in the money.. time to buy you that bear Will

Jon Mell, 9 months ago

"I could be making all that up"... I hope Duncan pays closer attention than you do!!

Will Critchlow, 9 months ago

50% / month!! Nice work guys ;) Interesting numbers - I think we have always found early summer to be slightly worse. August tends to be fine and then a slight dip in September powers up to the end of the year. I could be making all that up though. I'd have to go and check the books... Certainly the months that have tended to be best ever have been August or Oct / Nov. We have gone down the 'more capacity' route as well (2 new employees this week) so we're trying to storm upwards through the next few months. Good luck to us all!

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