While the all too familiar phrase ‘It’s the economy, stupid’ has been so widely used in our political culture in a recent survey conducted by TD Bank there’s a new phrase ringing true for CFOs. 
It’s the cash flow, stupid.
With over 69% of CFOs and other cash flow managers that were surveyed at mid-sized businesses cash flow management was said to be the greatest contributor to their stress. What was surprising was that even though cash flow remained a top concern less than 8% said they plan to cut costs next year.
In fact 39% plan on investing in new technology from projected increases they will receive. Here are some other interesting facts revealed in the survey:
- 78% agreed that it may take two years for the economy to recover
- 45% noticed a sales increase over the past 12 months
- 58% project a sales increase in the upcoming year
- 55% rate interest rate unpredictability as a major concern
- 52% agree that access to credit is a major challenge
- 22% said the best decision made in the past 12 months was preserving cash
While the majority of those surveyed were optimistic and expect the road to recovery to be a little rough there were important lessons they took away from the recession.
First, it was minimize company debt loads to much more controllable levels. Second, it was put a stronger emphasis on cash management. Finally, it was avoid bad investments and put a plan in action to recover from the bad ones made.
Regardless of whether you own a small, mid-sized or large business the challenge of navigating your company’s finances through one of the worst economic periods since the Great Depression truly puts your company’s financial management to the test.
What lessons has your business taken away from the recent economic downturn?
Source: http://www.charlestonbusiness.com
Looking to obtain business credit while conserving cash flow? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to vendor lines of credit, fleet cards, business credit cards with and without a PG, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free audio seminar ($597 value)
Similar Posts:
- Got Poor Credit and Need a Business Loan?
- US Bank Unveils ScoreBoard – A New Tool for Business Credit Cardholders
- How to Build a Strong Business Credit Rating
- Four Business Charge Cards to Consider for Your Small Business
- IRS Mileage Rate Increased to 55.5 Cents per Mile
Recent Comments