I’m one of those people who can stumble across a random YouTube video and suddenly find myself watching hours of content about something completely unrelated to my world. Recently, that something has been aviation.
I came across a channel analysing aviation accidents, particularly those involving small private aircraft. One recurring theme caught my attention. Some private pilots fly under Visual Flight Rules (VFR), relying heavily on what they can see outside the aircraft. That can work perfectly well in suitable conditions.
The problem comes when conditions unexpectedly deteriorate.
Suddenly, visibility disappears. The pilot can no longer rely on the outside world to tell them where they are or what the aircraft is doing. Without the right training, instruments and ability to interpret them, the situation can become extremely dangerous.
It made me think about business.
Larger SMEs are a little like commercial aircraft. They usually have dedicated finance teams, established processes, regular reporting, forecasts and financial controls helping to keep the business on course. Smaller businesses often don’t have that infrastructure. And that’s perfectly fine, while conditions are good.
But what happens when the weather changes?
A major customer pays late. A large VAT bill arrives. Sales unexpectedly fall. Costs increase. Suddenly, cash is tighter than expected. This is where good financial information becomes your cockpit instrumentation.
Up-to-date management accounts and cash flow forecasts can tell you where you are, where you’re heading and whether you need to change course.
Perhaps you need to increase the thrust by chasing outstanding debts more aggressively. Maybe you need to reduce spending, delay an investment or arrange additional funding before cash becomes a problem.
The important thing is knowing early enough to act.
So, how are you flying your business?
Are you working from reliable financial information and looking ahead, or are you winging it? (pun very much intended!)
If cash flow regularly surprises you, speak to your accountant. Ask for better forecasting and financial information that helps you see what’s coming rather than simply telling you what has already happened.
And if they can’t provide that support, I’d be happy to have a conversation.
Your Growth Partner,
Nyasha K. Midzi CA