(Add to Favorites | View All Articles | Resource Directory)
|
|
|
Five Quick Ways to Speed Up Cash Flow
At one point or another, almost every business runs short of cash. Whether due to normal fluctuations in demand or an unexpected decline in sales, cash shortfalls are the bane of every company, and are responsible for sleepless nights for many business owners. Yet, there are a number of simple ways that you can reduce your dependence on your company's line of credit and increase the cash that you need. Here are five no-cost methods to try: Increase Receivables Collection Efforts: This is the easiest and fastest way to generate cash but, surprisingly, most companies do a terrible job of it. Start by calling all customers whose invoices are between 25 and 30 days old to ensure that they have your bill and to find out when it is scheduled for payment. These are the easiest collection calls to make and they often result in faster payment. And, it allows you to quickly rectify problems that may delay your check. Get Payment In Advance: Another often overlooked technique is to simply ask customers for advance payment, or for a partial payment for goods and services. This approach is especially valid with large purchases, or on work where you'll incur significant expenses before being able to deliver the final product. Most customers will agree to such a request without asking any questions. Invoice More Frequently: Many companies send out invoices once a month, typically at the end of the month. That gives buyers who purchased early in the month up to 30 additional days to play with your money. The frequency with which you prepare bills will depend on your business, but most companies can justify preparing invoices at least weekly. Shorten Your Payment Terms: Most accounts payable departments schedule your payment based on the terms printed on your invoice. If you provide 30-day terms, don't expect to get paid before then. However, many customers won't even notice if you change your payment terms to 15 days, or request payment upon receipt of your invoice. You'll still have to nudge the same "slow pays," but your good accounts will probably process your invoice more quickly. Accept Credit Cards For Payment: This isn't really a no-cost method, since you'll have to pay a service fee to the bank that clears the transaction. But, you'll get paid within days and eliminate much of the clerical support required to follow up on payment. Those savings alone often more than offset the service charges. And, your customers might even thank you for the frequent flier miles they pick up by using their credit card. There is, of course, one other important way to quickly generate cash for your business, and that is to increase your attention to sales. In all but a handful of cases, increased sales will make cash flow problems disappear. William von Achen is president of Strategic Management Resources, an executive coaching and management consulting firm offering advice and counsel to business owners and senior executives. For more information visit our web site at http://www.smrweb.com.
MORE RESOURCES: News provided by Yahoo! News and Google News US Celcos Urged To Create New Small-Biz Programs - Telecomweb 26% of Small Biz Raises Ad Spend, Precipitating Online Growth - Marketing Vox News Poll: 25% of small-biz owners worry about survival - Bizjournals.com Wage Increase Will Hit Some Small Biz Hard - NBC4i.com Apple Reworks iWork for Small Biz - bMighty.com Six small biz tips from a CEO who flies right - BloggingStocks |
|
|
|
RELATED ARTICLES
10 Filler Activities for the Summer Business Slowdown Summer is a time for the outdoors, for that well-deserved vacation, and with everyone out and about, it's also a time that you may notice a slowdown in demand for your products and services. So what can you do during this summer slowdown? Well, it's a great time to do the work that otherwise never gets done during the busy business year. What Is YOUR Value Proposition? Every company has a value proposition. That is a statement of their perceived value to their clients. There Are No Dumb Business Questions, Not! Q: I'm curious. What is the dumbest business question you've ever been asked? -- Norris W. Creative Metrification - A Technique to Improve Some things in business are relatively easy to measure - these are the "hard" metrics such as sales volume and profit, production per man-hour, time without an accident, shipments without error, number of customers served, on-time delivery, etc. Other, "soft" metrics, are more difficult to quantify, but with a little creativity, measurement can be made of just about anything. Why is My Restaurant Not Full Every Monday Night? In a quest for customers and to keep those customers, restaurants are now compelled to develop a marketing plan. Marketing plans are a crucial component for anyone who has the desire to make their restaurant a success. Mobile Car Washes and Shoe Policies Mobile carwashing is hard work, it is tough on the your body and it pays to have athletic type shoes that do not get wet easily. Sometimes rapid pace car washing in parking lots can be a lot like playing basketball, except you are on a slippery and uneven surface. Designing a Franchise Training Program If you intend to franchise your company you will need to design a bullet proof training company for your new franchisees. This is above and beyond the training program you will design for them to administer to their new employees. 7 Tips To Improve Your Cash Flow Cash is King?That is what everyone tells us and it is true! You cannot function successfully in any business without proper cash flow. So if this Cash Principle is so well known, then why is it that so many businesses struggle? Sometimes the obvious is not always so obvious when you are entrenched in running the day-to-day aspects of your business. Never Burn a Bridge Why should you always maintain a good report with a business even when you are parting ways?It is human nature to get mad and then rant and rave about what is not going well at work. Many of us spend time gossiping and socializing with the main topic of what the problems are and who is responsible. A Lesson From "The Apprentice" That Can Make You A Master I have to admit, I was curious. When I saw previews of a new show called "The Apprentice," it made me want to at least watch the premiere to see what was going on. Shocking Experienced Copywriter Reveals Little-known Secrets To Closing BIG Ticket Deals! Hogwash!That's what I say to people who tell me that their business is purely and solely a "cheapest price business."People who stubbornly insist that "MY business is different" are right, but not in a good way. Do Home Businesses Complicate Small Business Debt Collection Laws? The home-based business market, sometimes called the SOHO (small-office/home-office) market, is booming. As more and more B2B businesses expand into these markets, they may find themselves walking a fine line between B2B and B2C. Franchising Pros and Cons Last week's question from Anthony R. on how to choose the franchise that would best fulfill his life-long dream of owning his own business sparked a number of emails from other readers wanting to offer their two cents on the subject. Business Failure, The 8 Traps Causing Failure And The One Attribute Which Ensures Business Survival It is estimated that 78% of all small business start-ups fail within the first twelve months years, and long-term survival is likely for only 22% of all new business start-ups.At the same time huge corporations with seemly vibrant trade suddenly close their doors. Build Credibility, Value, and Trust on a Shoestring Setting priorities in your business? Your first job is to sell. Selling is - writing the orders; receiving the cash; feeding the beast. Hosted PBX, Is It Right For You? "Order Now!" "Your Business Will Fail If You Don't Have This New Technology!" "Your Competition Has This Tool, Why Don't You?" Does any of this sound familiar? Does it make you cringe? It seems to be impossible to keep up with all the new trends in business today. It's hard to know which trends are just flash in the pan gimmicks and which are valuable tools that your business can actually benefit from. Small Business Support Equals Survival Support is critical for your small business survival. You may shy away from the thought of having an advisory board to guide you through your rough spots, but having a group of professionals who are willing to be your sounding board can mean the difference between success and failure. Pet Grooming Business Do you like animals? Would you like to work for yourself? Pet grooming could be the career for you.A grooming business is more than just washing dogs. The Hidden Treasure in Your Business I started working with another new client last week. He has been in business for about a year and a half. Starting A Concrete Cleaning Pressure Washer Business Concrete cleaning can be a lucrative business to start. Here are some tips which will help you do it right.
|
| home | site map | articles |
| © 2006 |