Can you to look at your business through a telescope?

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I ask the question after an interesting experience that I had last week

I was contacted by a client I hadn’t seen for a year. He had a restaurant which was having problems and I suggested that he close it and become a pop up restaurant, using a van. He could then go to all the festivals and make money without the fixed cost of a unit.

I heard nothing for a long time, then this week he contacted me for a chat. He explained that he liked my suggestion and was therefore closing down the restaurant and putting all the restaurant equipment in store, so that at some future date he could start up again.

His plan is now to go mobile; his problem is that he has no money and as he had been slow in paying his creditors, his credit rating had plummeted. Could I help? My answer was to start asking questions.

How much money did he require to get going with the mobile unit? He said roughly £8,000.

So, I asked how much could he get for the stock in storage? His answer was between £8,000 to 10,000.

This led to the obvious answer. If he sold everything he had in storage, he would have the cash he needed. Then when the pop-ups made him enough money, he could afford to buy new kit.

“Brilliant” he replied, “why couldn’t I see that”, he then upped and rushed off!

I even had to pay for the coffee!

I now wonder how many other companies there are that are being held back, when actually, the solution is staring them in the face. However, it needs someone else to point it out?

That is what we do, at Think Cash!

Tony Dalton is a well respected business Mentor covering the Midlands and Warwickshire area. Click here for more information on Tony and "Think Cash"

#thinkcash #cashflow #cashmanagement #stock #stockcontrol #kenilworth

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