At times like this cash really is king and according to Business Link, not doing the basics such as a regular cash flow forecast increases the chance of business failure by 45%. 

Ten tips for financial health: 

1. Cash flow and financial planning should be on your management meeting agenda’s every time. 

2. Regularly update your cash flow forecast. 

3. If you have a conflict in choosing between increasing profits or increasing cash, take the cash route. 

4. Watch your borrowing covenants carefully so you know when/if you are likely to be in breech. 

5. If you have a review with your bank or investors, prepare thoroughly. 

6. Keep your bank informed in advance of getting into difficulty. 

7. Consider all alternative sources of finance. 

8. Keep in touch with potential funders before you think you might need them. 

9. If your business survival is under threat, think of assets that can be sold, new injections of cash and take professional financial and legal advice. 

10. If you are cash rich, consider ways of using the funds for the long term benefit of your business. 

You can read my personal blog at http://finance-director.blogspot.com/

 John Toppin at www.nomizon.co.uk 

 James Cooke at www.jamescookecoaching.com