Christmas is fast approaching (in case you hadn’t noticed) and I have to say I am greatly looking forward to it.
One of the main reasons I started my own business was to be able to spend more time with my family, and watch them grow up, and of course Christmas is traditionally one of the great times for all that. Also this year our youngest has finally got beyond the stage of believing in Father Christmas, so we no longer have to stay up to some unearthly hour, and try to deliver a stocking without waking her up (nigh on impossible in any case, as she seems to sleep with at least one eye open on Christmas Eve)!

So it is a time to unwind, a time to reflect, a time to plan, but for all business owners, to remember why you started running your own business. For many, or perhaps most of you, one of your reasons may well have been like mine. Have some family time, get away from the business for a while, and really relax and unwind. I know that we are all “under the cosh” at the moment, but nevertheless, don’t lose sight of this, and make sure that you give yourself a break this Christmas.

So no business advice this week, except to switch off and forget it for a week or so. I, no doubt, will eat too much, drink too much, and have great fun with the family, though I am wary of being made to join in the dance game on the Wii. Apparently I will be made into an object of ridicule by my children – no change there then1

Have a great Christmas, and let’s start 2012 refreshed with a really positive outlook for the future.

As we wind down to Christmas perhaps now is a good time to reflect on the year, acknowledge what has been good and bad about it, decide what we have learned from it, and make sure we change things, and don’t make the same mistakes again next year.

The breakfast club I belong to (The Business Café) spent a very useful and interesting session this morning discussing these things, and I certainly came away from it feeling extremely positive.

The thing is, it is so easy to forget the good things, when everything seems to be gloomy all around us. In fact as it turned out, the majority of us had a lot of positive stories to tell, and we generally felt that more good things lie ahead for us in the coming year.

Equally well we shouldn’t just ignore the bad things, and hide them away, or there is more likelihood that we let them happen again. Facing up to these, understanding the issues, and resolving to learn from these mistakes is more likely to ensure that our businesses perform even better next year.

The other recurring theme that came out of the session, was to live for the moment, and to make sure that our businesses are giving us what we want, not being tied to them and letting them drag us down. I know I have often talked about the need to “enjoy the journey” and make the most of every situation, but perhaps now more than ever, we need to focus on all the good things that happen to us every day, however small they may seem.

So keep focusing on the positives, and more good things will come your way.

Cash flow is one of the biggest issues in all businesses right now. Of course cash flow should be something we all keep a close eye on at all times, but when times are tough as they are at the moment, people hang onto their cash for as long as they can.

Traditionally this has always been an issue between big and much smaller businesses, whereby the bigger company tends to dictate how and when they will pay. A grossly unfair situation no doubt, but the smaller companies are so desperate to hold onto the big account that they let it happen, and can sometimes find payment being delayed for 3 or more months.

But now, it is not just the big companies holding back payment. It goes right through the whole economy, and naturally enough this is exacerbating what is already a very tricky situation. If the money isn’t flowing or circulating quick enough, the knock on effect down the line can be devastating. If every link in the line, delays for an extra 3 or 4 weeks, by the time the last person in the queue gets paid, it can be too late.

So what should we all be doing about it? Ideally we should all be paying on time, but that I would suggest is unrealistic for many or even most of us. But to cover our own backs we need to keep constantly watching and checking our accounts. As soon as a customer becomes late in paying we should be chasing them for their money. Always keep contingency plans, and keep an eye out for any warning signs that one of your customers is likely to go bust.

Above all, don’t ignore the warning signs. If it doesn’t feel right, do something about it as early as you can. If you don’t you could be the next one to suffer.