Cash Management | Cash is most definately King | Back
Cash is most definately King
One of the biggest causes of business failure is cash flow. Having a tight cash collection system will keep money coming in, control bad debts, and build your bank balance
collecting what you are owed is paramount to survival"
Collect your cash on time and reduce overdue debtors
If you managed to collect an increasing amount of cash owed to your business on time and reduce the bad debt burden on your business, would your business grow?
Well there is no denying that Cash is King in business. If you run a retail type business or any other business that charges up front then you are pretty well insulated from this effect. If, however, you invoice your customers monthly then this is of vital importance to you.
You can have the best lead generation and sales conversion in the world, with great margins and up sells and customer lifetime values, but if you don't get paid you go BUST!
There are several ways in which you can influence payments but mostly it's about making it as easy as possible for people to pay, and then actually asking them to pay on time and reminding them promptly if they don't.
Members of The Business Builder Club can learn how to setup online payment gateways, setup credit card facilities, and Direct Debit payment schemes. They can learn about invoice discounting and debt factoring for higher margin sales, and some simple techniques to keep your clients paying you even if they are struggling to pay others. Also how to spot danger signs.
It still amazes me why customers expect to get 30, 45 even 60 days to pay for a service or product. They are basically using you to lend them the cash short term so why shouldn't they pay a premium for that?.
Learn about the recent business credit acts allowing you to charge interest on overdue amounts, and learn about legal instruments such as statutory demands and what your invoices should say.
Learn all about keeping your cash flow positive. Join The Business Builder Club today
