Business Coaching, Mentoring & Advice are frequently advertised together as one package, so, if you are a business owner, it is important that you understand the difference between each of them, to enable you to decide which is most relevant to your business. We will consider what each of these three services involve below, so that you know what you’re paying for.

Coaching

Coaching involves training on personal and business development. If you hire a coach, they should teach you how to achieve a variety of business goals. You should think of coaching as a more convenient way of learning than having to go to evening classes, dedicating hours to a digital e-learning course or an MBA. If you listen to and implement your coach’s guidance, you should achieve each one of your objectives over an agreed timescale while working with them.

For example, imagine that Gill has spent a few years running a successful business which creates apps and websites for discerning clients, working with a very small team. Now that the business has grown, she is at the stage where she needs expand this team. Business coaching would help Gill to delegate responsibilities across this larger team and ensure that each member of his staff achieved what was expected of them. Without the guidance of an experienced business coach, Gill may struggle to manage her new team, and her company’s performance may decline as a result.

Mentoring

Let’s say a business prospect has asked for a meeting at 7 am. You didn’t fancy working at that time so didn’t attend the meeting. Now you’ve lost the sale and feel downcast. An excellent response to this situation would be to engage the services of a mentor, who will help you to remain motivated, set realistic goals and disciplines for yourself and adopt behaviours which will lead you to business success.

Mentors can often provide useful support for start-up entrepreneurs who are embarking on their journey into the business world. For example, a mentor can help start-ups to reflect on the expectations that potential customers will have of them and the demands their new role will make on their personal lives.

Advice

If you need direct guidance and opinions on issues affecting your business, you should seek the advice of recommended business advisors. This advice could cover a range of areas, including property, production, planning, forecasting, marketing, or accounting. Remember to check out advisors’ backgrounds and any testimonials too. Have they got real industry experience ‘at the sharp end’, backed by recognised qualifications, and can they provide case studies in success which are relevant to your needs?

This kind of support doesn’t come free, and, as a business owner, you might be tempted try to save money by seeking guidance from the internet or completing tasks yourself. Although this may seem like an excellent solution, it ignores the added value of this support which usually far outweighs the cost. In addition, acting without advice can often expose your business to a broad range of risks, which would have been spotted and eliminated by an experienced consultant. These risks can cause your business serious difficulties and may often end up costing you more to rectify than the fees of a consultant. Good advice is rarely cheap. Mistakes are always expensive.

Here are some suggestions for stopping the stress from taking over, and putting you back in control when your business is going through a cash flow crisis.

Remember to step away

Staying too close to cash flow problems 24/7 will leave you feeling tired, unable to make clear decisions, and often saying the wrong thing. Whilst it’s important to try to maximize daily cash flow, it’s equally important to give yourself a break, so you come back feeling fresher.

Analyse key areas of your business’s performance

If areas of your business are eating cash but not returning regular results, then reconsider your investment in these areas. Is it worth spending £800 a month on your social media management if this channel isn’t generating sales for your business? Are you receiving regular feedback on results? Does the marketing message need to be revised? Ultimately, could the money be better spent elsewhere? Make sure that investments (time, as well as money) you make in your business are as efficient as possible, so that your cash is always making you more cash.

Control the credit you give

Sales aren’t necessarily cash! Being willing to let goods be delivered or services provided without immediate payment is potentially risky but often commercially necessary to achieve the sale. So, mitigate that risk by ensuring new clients are thoroughly checked out, with prices, terms and conditions of sale already agreed. Once trading starts, systemize your control of credit. For example, ensure invoices and statements are rolled out promptly, and identify any disputes quickly. Consider asking more challenging new clients for a partial payment up-front to test commitment. Be prepared to offer settlement discounts if you feel this could free up your cash flow without compromising margins unduly. Above all, build relationships with those responsible for paying you – when cash flow is tight, you’ll be glad you did.

Forecast, Forecast, Forecast!

Mapping out short-term cash inflows and outflows is a vital exercise when cash is tight. The exercise gives you a forward view, enabling you to quickly spot any shortfalls, so that you can potentially re-time other payments. Critically, you start managing your cash flow, which puts you back in control, and reduces your stress levels.

Could help come from outside?

If you are already doing all you can internally, re-financing your business may provide an extra lifeline, just when you need it. There may be a number of options that you can explore, depending on the state of your accounts. Just make sure you take professional advice from sources that truly understand your situation, with practical experience to back up that support.

Be straight with your staff

You need your team on side when you are facing a cashflow challenge. Why not provide them with a balanced view so that they know that you are both positive and realistic about the outcome? You will be amazed at how often they can help you with their own suggestions, so that they can become part of the solution.

Keep your trading contacts in the loop

No one wants to see a business fail, so keep talking to key business decision makers – treat them fairly and they may be able to provide additional support.

Maintain a balance

Ultimately, you need to be aware that there is only so much that you can do. The most important stress reliever is to balance positivity and realism.  You can reassure yourself that you have explored all the opportunities to find the light at the end of the cash crisis tunnel.