identifying & understanding early financial warning signs

@TheBusJourney #SMEJourney

Nikki Williams

The Business Journey

Identifying & Understanding Early Financial Warning Signs

Nikki Williams15 November 2016

www.mlmsolutions.co.uk

www.mlmsolutions.co.uk © mlm Solutions 3

VISION

Cash is King

• A strong cash flow ensures you have sufficient funds to meet the financial obligations of the business and is crucial to maintaining the viability of the business.

• Financial monitoring should hopefully highlight issues and enable intervention before it’s too late…..

• Failure to monitor your cash position is likely to lead a loss of control


VISION

Signs of Financial Distress

• Suppliers

• Customers

• Management Information

• Lenders

• Employees

• HMRC

Business Review

• Where is your money going?

• Can you critically evaluate your own business?

• Is your management information relevant & reliable?

• What can be improved?

• Is there a strong underlying business?

• What level of support do you have?


Outcome

• Options

• Strategy


Remember

• Know your business

• Know your market

• Be prepared to ask the professionals for help

• Be prepared to make tough decisions

• Stress is expected

• Be prepared to cut your losses

• Effective communication is key to a successful outcome



VISION

We are Different

@TheBusJourney #SMEJourney

Thank you.