From the ground & as a one man SME I have heard recently from some clients that business is up this year, more work coming in .. green shoots at last, yippee
So heres the BUT:
In all cases they said more work and business coming in BUT it is impossible to get paid for that work. So plenty of work .. for free?
Credit being pushed way way out - each week / month that passes where you are not getting paid lowers the value of any profit from that job? Plus ( as is in my case ) supplier credit has dried up in alot of areas ( not because I am a bad mark ) - suppliers / distributers have been stung by others so COD. Hence any product you buy for client is, cost wise, crippling your cash flow on two fronts. You have paid for the product but the customer isnt paying you for ages for this product. In effect alot of SMEs are becoming Banks for their client base.
If we are all getting more work but not getting paid or credit is way out there - are we in fact being busy fools? You would have to ask whats the point of being busy with work but then not getting paid for same?
Add to all this Revenue Tax payments, Rents, Rates, Utility costs which one cannot put off regardless of cash flow.
So the green shoots tell part of a story that might be true in that business is picking up but the part not told is we are not getting paid for this new extra business. Those shoots are not so green are they?