January: It’s time to consider cash flow strategy 

Take control of your cash flow strategy 

For many businesses, January brings a familiar challenge: a tightening of cash flow. It can feel unsettling, but in reality, a January dip is both common and predictable, and with the right strategy, entirely manageable. 

Rather than reacting to short-term pressure, January is the time to take control of cash flow and plan confidently for the year ahead. 

Cash flow dips are to be expected  

Several factors typically combine to create cash flow pressure at the start of the year: 

• Reduced customer spending following the Christmas period 

• Outstanding invoices from December still to be collected 

• Fixed costs continuing despite a temporary slowdown in income 

This shift is a standard phase of the business cycle, not a failure, and can be managed with proactive planning.  

Adopting a strategic approach to improving cash flow in January 

The most resilient and growth-driven businesses don’t just monitor cash flow; they manage it strategically. That means: 

• Reviewing and updating cash flow forecasts 

• Focusing effort on higher-margin, cash-generating activity 

• Planning for seasonal peaks and troughs rather than reacting to them and communicating with the Bank in a timely fashion 

• Building cash reserves to support future growth and investment 

When cash flow is treated as a strategic tool, it becomes a source of confidence rather than concern. 

If you want January to be about progress, and not just pressure, a strategic cash flow review is the ideal place to start. 

Speak to us about how our advisory services can help you plan, forecast, and grow with confidence this year. Contact us at info@burgesshodgson.co.uk 

This article is part of our January series focused on direction, clarity, and building foundations for growth. More insights coming soon.