Why cash flow is THE most important issue facing SMEs and UK PLC.

Why cash flow is THE most important issue facing SMEs and UK PLC.
If the sudden collapse of Fly BMI on the weekend ignited my curiosity on this subject, the disturbing news today of JLR’s £4bn losses fanned the flames. Cash flow. The lifeblood of all business.
Whether an SME business or an iconic British brand, begs the question, “Why isn’t cash flow at the front and centre of every company’s and government’s business strategy?”
Tata’s executive board deserve to hang their heads in shame pillaging increasing dividends when their cash cow needed strong cash flow metrics and tighter corporate governance.
The lessons from BMI and JLR are obvious, brutal examples of what happens when a decent business, with great branding, lacks cash flow B- plans. I’m going to be controversial now, bare with me.
Fly Bmi didn’t go to the wall because of Brexit. It sank because they didn’t have a plan B for their cash flow, losing their talented team & hardworking staff.
Let’s hope JLR, their owners & Directors can craft better cash controls or UK PLC will lose another, much larger iconic brand forever and with it hundreds of supply chain businesses & jobs. A great credit controller and accounts team have never been so important.
Written by Mary Maguire
MD
Astute Recruitment Ltd
First published on LinkedIn