Running out of cash - a checklist of what not to do

Use this checklist to evaluate your current practices, identify where your opportunities and weaknesses may exist and avoid financial difficulties down the track.

What not to do includes:

Delay sending out an invoice
Lose records of work done
Fail to chase debtors for payment
Fail to take credit from suppliers when available
Pay excessively promptly when there is no incentive to do so
Buy unnecessarily large quantities of supplies just to get discounts
Buy equipment and vehicles for cash instead of investigating hire or rental or loans
Hire staff who are inadequately trained or who cannot maintain quality standards
Keep on staff when there is no realistic prospect of work
Fail to check documents before you sign
Fail to get a signature if you deliver goods, or confirmation that service has been satisfactory
Lay yourself open to theft
Trust a book keeper completely
Take on prestige premises in city centres when they are not essential
Try to insure against every conceivable problem, even minor ones
Don't keep your bank manager informed
Fail to plan your cash needs in advance
Don't compare actual performance with plan or budget
Take on a very big order or contract
Don't confirm agreements in writing
Keep saying to yourself - it's only a few pounds...