Why cash flow matters
Profit is important, but cash pays wages, suppliers and loan repayments. Even strong businesses can struggle if money arrives late. A few disciplined habits around invoicing and collections can shorten the time it takes to get paid, reduce borrowing costs, and create headroom for growth.

Set clear expectations upfront
Agree payment terms in writing before work starts, including due dates, late payment interest, and accepted payment methods. Send a simple welcome note that restates these terms, introduces your invoice format, and gives a named contact for queries. Clarity at the beginning prevents disputes later.

Invoice fast, invoice accurately
Raise invoices as soon as a milestone is met or goods are delivered. Include purchase order numbers, full descriptions, and your bank details. Errors cause delays, so use templates and a final pre-send check. Where practical, take deposits for bespoke work and split larger projects into staged invoices.

Make paying effortless
Offer more than one way to pay, for example bank transfer and card. Add a payment link on every invoice and email. Encourage direct debit for recurring fees, which reduces admin and failed payments. If customers require supplier onboarding, complete it early so nothing blocks the first invoice.

Adopt a calm, consistent credit control rhythm
Create a weekly timetable for reminders, starting a few days before the due date. Use friendly wording, provide the invoice again, and ask if there are any problems processing payment. Escalate politely after set intervals and log every contact. Consistency, not confrontation, gets results.

Know when to escalate
Pause further work if terms are exceeded, agree payment plans for good customers in temporary difficulty, and consider professional recovery for persistent issues. Good cash flow is built on clear processes, dependable follow-up, and the confidence to hold the line.

A management buyout keeps the business in familiar hands. The team that already understands customers, systems, and culture steps into ownership, which reduces disruption and protects service quality. For founders, a management buyout allows a planned transition with clear handover milestones and an agreed role after completion if required. This continuity reassures clients, employees, lenders, and suppliers, and helps the company maintain momentum during and after the deal.

Compared with a trade sale, the process is usually more focused and confidential. The buyer group already knows the business, so diligence can be more efficient, with fewer surprises and a smoother negotiation. Pricing can be structured to reflect real performance, for example through staged payments linked to agreed targets, which helps both sides feel that the value is fair and achievable.

Ownership aligns incentives across the team. Managers become investors in outcomes, not only delivery, which encourages sharper decisions on margins, cash flow, and growth priorities. Equity participation helps retain key people and can support a wider share scheme, building a performance culture that rewards contribution. The result is often a more agile business with clear accountability and faster execution.

Funding can be tailored to the business. A mix of bank debt, vendor financing, and private investment can be designed to suit cash generation and risk appetite. Earn outs and warranties can protect both seller and buyer. With the right preparation, including robust management information and tidy legal housekeeping, a management buyout can deliver a clean exit for the owner and a confident new chapter for the team.

Many small business owners turn to family members when looking to fill roles in their team. It can seem like a natural choice, offering trust, loyalty, and a shared sense of purpose. However, employing family in your business is not without its challenges, and it is worth considering the potential pitfalls before making that commitment.

One of the main risks is a lack of objectivity. Family relationships can cloud judgement when it comes to performance, discipline, or promotion. It may be harder to have honest conversations about underperformance or to apply the same standards as you would to non-family staff. This can lead to resentment among other team members and undermine morale.

There is also the risk of blurred boundaries. If work disagreements spill into personal life, or vice versa, it can strain family relationships. When personal loyalty and business interests conflict, it can create tension that affects both the family and the business.

Tax and payroll rules must also be followed carefully. HMRC requires that family members employed in a business must be paid a commercial rate for actual work done, and they must be treated in line with employment laws. Inflated pay, unclear job roles, or token positions can lead to problems with tax compliance and potentially trigger enquiries.

Succession planning can also become difficult. If some family members are involved and others are not, questions may arise about ownership, leadership, or fairness in the long term. This can be particularly sensitive when passing the business to the next generation.

In short, employing family can work well when there is clear structure, professional standards, and open communication. But it is essential to treat family members like any other employee, with roles, responsibilities, and expectations clearly defined from the start.

For small businesses and growing companies alike, one of the most reliable sources of funding is often the profits they generate. While it can be tempting to extract earnings in the form of dividends, bonuses, or reinvestment elsewhere, there is a strong case for holding back a portion of those profits to strengthen the business’s financial position.

Retained profits are an internal source of finance. They can be used to fund working capital, smooth out seasonal cash flow fluctuations, and take advantage of growth opportunities when they arise. Unlike external borrowing, there is no interest to pay, no lengthy application process, and no exposure to changing credit conditions. Retaining profits also gives business owners more flexibility and independence when planning their future.

Maintaining a strong cash position helps protect the business during lean periods. Whether facing late customer payments, unexpected cost increases, or a sudden drop in demand, having cash in the bank can prevent a short-term problem turning into a crisis. This is especially valuable for businesses that operate in volatile sectors or rely on a small number of customers or suppliers.

Retained earnings can also be used to invest in assets, expand operations, hire new staff, or develop new products or services. These actions support long-term growth and build resilience into the business model. In some cases, retained profits can help improve the business’s credit rating, making it easier to secure funding if needed later.

While there is a balance to be struck between rewarding owners and reinvesting in the business, setting aside a proportion of profits each year creates headroom for growth and strengthens cash flow management. It is a disciplined approach that helps build a stronger, more sustainable business.

The Valuation Office Agency (VOA) has issued updated advice to help business owners choose and monitor business rates agents more effectively. A key message is that the name listed in the Check and Challenge service must match the name on the signed contract. If it does not, this could be a sign of misleading activity, and business owners are encouraged to report any mismatch directly to the VOA.

This guidance comes in response to cases where agents have changed their trading names after complaints or regulatory scrutiny. The VOA is reminding businesses that transparency and due diligence are essential when appointing an agent.

Although there is no requirement to appoint an agent, many businesses choose to do so for support with managing business rates. If appointing one, it is important to conduct independent research and not rely on an agent who contacts you first. Check that any agent is a member of a recognised professional body such as the IRRV, RICS or RSA. These organisations enforce ethical codes and can handle disputes and complaints.

Before signing a contract, business owners should review it carefully to understand the services offered, the fee structure, how to exit the agreement, and the duration of the appointment. Be cautious if the agent uses high-pressure tactics, requests large upfront payments, or makes bold claims about savings.

Once an agent is appointed using their agent code through your business rates valuation account, all correspondence with the VOA can be monitored. You should not share your personal login details. If the agent later operates under a different name, it is your responsibility to alert the VOA.

If issues arise and the agent is not part of a professional body, concerns should be raised with Citizens Advice or Trading Standards for further support.