Running a business can be like managing a high-stakes game of Monopoly, only without the colorful money. The key to staying in the game? Cash flow management! Because nothing says “business prowess” like not bouncing your rent check while plotting world domination from your garage office.
First, let’s talk about business financing. Imagine walking into a bank, ‘armed’ with your meticulously crafted business plan (you’re certain of how cleverly its been written because you’ve had it vetted by the regulars at your favourite watering hole) and a can-do attitude. You sit down with the loan officer, whose expression falls somewhere between “I’ve seen it all” and “I’d rather be anywhere but here.” You present your grand vision, and the loan officer nods politely while secretly texting under the desk. After what feels like an eternity, you leave with a list of reasons why your business is less likely to succeed than a screen door on a submarine.
But fear not, entrepreneurs! There’s always the option of angel investors. Picture this: you’re in a room full of people whose net worth could fund small countries, pitching your idea with the enthusiasm of a kid selling lemonade. The angels nod thoughtfully, their halos gleaming with the reflection of your PowerPoint slides. One of them speaks: “I love your passion, but can you explain how this app will revolutionize the cat food industry again?” You walk out with …again, another lesson in humility.
Now onto the delightful chaos of cash flow. Cash flow is the lifeblood of any business, they say. It’s like trying to keep a bathtub full while the plug is out and your cat is batting at the faucets. There’s nothing quite like the thrill of checking your bank balance to see if you can make payroll, pay the electric bill, and still afford that fancy new coffee machine for the break room (priorities, right?). Fact check; This happens…to over 65% of businesses at in their first 10 years . Hopeless? Doesn’t have to be!
Accounts receivable? That’s just a fancy term for “money you’ll get someday, hopefully before you retire.” Trying to collect payments from clients can feel like participating in an extreme sport; You send out invoices with a smiley face emoji to keep things light, but as days turn into weeks, your emails get progressively sterner until you’re channeling your inner debt collector. “Good afternoon, just a friendly reminder that your payment is now only 90 days overdue. Hope you’re well!” Alternatively, you can leverage your receivables ( Banks or quick Specialist Receivable funders, which discounted lightens your margins. This must be how we get the term non-fat margins. Ouch!
Despite the trials and tribulations, the key is to keep a sense of humor. When cash flow becomes a trickle, remember that every business has its ups and downs. And if all else fails, there’s always that unused Monopoly set in the closet. At least in that world, you can print your own money.
Remember, business might be serious, but that doesn’t mean we can’t laugh at the absurdity of it all. Don’t forget the best part…Lodestar Financial does this for a living – normally we don’t laugh at this part…but I can’t help it!!! Call us, we leave the humour at the door and fund companies nationally. See our experience
