In this episode, Simon addresses a sobering fact: over half of UK small businesses have less than six months’ cash reserves. If that sounds familiar, you’re not alone. Simon guides listeners from financial panic to practical planning, offering three actionable steps to boost financial clarity and build resilience-without needing to become an accountant.

Discover how to run a simple cashflow health check, build habits for greater financial visibility, and why seeking external support is a sign of strength, not weakness. With relatable stories and hands-on advice, this episode is your invitation to take ownership of your business’s financial future and lead with confidence.

Key Frameworks and Practical Tools

1. Cashflow Health Check
A quick, three-question exercise to assess your business’s financial runway:

• What’s your average monthly outgoing over the past 90 days?
• How much liquid cash do you have available right now?
• Divide your cash by your average monthly spend-this is your runway (in months).

If your runway is less than six months, you’re not alone. Use this clarity to identify costs to trim, renegotiate supplier terms, or accelerate outstanding payments.

2. Triple Your Visibility
Build financial confidence with simple weekly routines:

• Every Monday: Spend 10 minutes reviewing last week’s income and expenses.
• Midweek: Forecast known payments and income for the coming days.
• End of week: Plan for the next week’s cash flow.

No fancy tools required-a basic spreadsheet works, but apps like Xero or SmartBooks can automate and visualize your numbers for added insight.

3. Seek External Support
Don’t go it alone. Engage an accountant or a business coach to:

• Translate numbers into actionable strategy.
• Help you confront tricky decisions.
• Build long-term financial resilience.

Asking for help isn’t a weakness-it’s a smart business move that can transform shame or confusion into clarity and confidence.

Bonus: The Pots Method
Inspired by Jim Rohn, set up separate “pots” for different business needs (e.g., taxes, projects, reserves) as income comes in. This proactive approach reduces reliance on credit and helps you plan for future investments.

Takeaway

You don’t need to be a finance expert, but you do need to own your business’s financial health. Start with a cashflow health check, build visibility habits, and seek support when needed. With clarity comes confidence-and a stronger, more resilient business. Join Simon at the lunch table and lead your business to a better, more secure future.