Short on cash? Whatever the reason – high receivables or poorly planned investments – a negative attitude in response won’t help.
Management may decide to cut back in certain areas or do without essentials needed to grow the business, says Bob Greenwood in the latest episode of Greenwood’s Garage: Managing Cash in Changing Times. But that’s not a wise decision.
“That attitude can become a cancer to the business moving forward and in turn direct the business down a path with negative long-term results,” he says.
Shops should focus on a balance sheet checklist to ensure its cash position is in good shape. And Greenwood adds a tip – take $10 out of every invoice and put it away into a savings account. Use that money to improve the business, especially for expensive upgrades, like equipment and software.