3 Things You Must Do Before Applying For Business Finance

3 THINGS YOU MUST DO BEFORE APPLYING FOR BUSINESS FINANCE Funding and Business Growth Playbook T: 0330 350 3356 @: hello@GrowingYourNumbers.com www: growingyournumbers.com

We will start by focussing in on the three key topics that are key to successfully accessing funding and then expand on these to provide you with a template for the ongoing management and successful growth of your business. Think of it as a plan for you as the owner, on your journey from start-up through to growth. You need a road map for successfully building and extracting maximum value from your business when the time come to exit / sell, as it inevitably does for all of us.

Sort Out Your Cash Flow

For many businesses, there is considerable ‘working capital’ tied up in the business. With the right systems, processes and procedures, this can be converted into cash that could mean you don’t need to borrow at all or dramatically reduce the amount you need to borrow.

Evidence that your working capital management is under control is one of the key factors lenders will look for, so this is the obvious place to start.

There are three key ‘Cash Flow Drivers ’ , and whilst on the topic of ‘Drivers’ there are also six key ‘Profit Drivers’ , collectively these are referred to as the Business Growth Drivers, more about profit later, for now we are going to focus on the three Cash Flow Drivers. If you have a well-run business, you will know what they are at any moment in time and be clear on the current ‘ direction of travel ’ , i.e., are you heading in the right or the wrong direction. For most of us some things will be going well, some less so, but unless you are tracking the right information, the detail is seldom clear, making it difficult to know which lever to pull to get back on track when things are not where they ought to be.

The three Cash Flow Drivers:

Debtor Days: How long it takes your customers to pay you

Funding and Business Growth Playbook ^N0 V1.1 (GYN FO).docx | Confidential

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