Beware the "Stealth" Threat to business continuity

Protected against cyber attacks? Excellent. Are you prepared for a utility supply failure? Well. Password protected to resist data breaches? Marvelous. But what if something is threatening the continuity of your business right now that you hadn’t even thought about? It is all about the money.

The top ten threats to business continuity felt by companies around the world this year have one thing in common: they are all “immediate”; sudden, unexpected and dramatic.

The cyberattack is at the top of the list, closely followed by data breach and loss of connectivity or phones. But what about the threat to business continuity that can invade companies almost without their realizing it, but can be just as deadly if used stealthily: cash flow?

Money is the oil that lubricates the machinery of commerce. And as we all know, without lubrication it will grind to a halt and can be impossible to restart.

The problem is, unless you pay close attention to it, cash flow can slowly deteriorate and reserves can drop to dangerous levels; When that happens, it may be too late to take corrective action. The secret to avoiding the cash flow conundrum is to avoid looking away from it.

1. Check regularly, every day it does not hurt, to see that everything is in order.

2. Verify that you are getting paid when you should, and that clients are not using you as a source of free credit for not having settled their invoices in a timely manner. Be good at managing money by refusing to feel embarrassed about accepting money owed to you. The only ones who should be ashamed are those who do not pay.

3. Invoice quickly. If you leave invoice writing until the end of the month, you could be giving customers an additional 30-day credit for no reason.

4. Don’t keep too much stock in the business. Experience will tell you what you need. Try to see the stacked material on the shelves as stacks of bills; that will focus the mind quite effectively.

5. Avoid overdrawing. It is a very expensive way to “buy” extra money.

6. Regularly review your spending on small and expensive things. You may be surprised to find that you are inadvertently overspending on unexpected expenses, very often the case in companies with fewer than ten employees. The problem is that being busy making sure that everyone, including him or her, takes care of the customers, means that the boss may not be taking care of the business. This is when expense management can take a backseat. Disciplined use of money management applications can help businesses get through it quickly and easily.

The bottom line? Remember that you cannot have a successful business with weak cash flow. Take this into account when making all business decisions.