Avoid the Fifth Deal Breaker: Cash Flow Mishaps

Avoid the Fifth Deal Breaker: Cash Flow Mishaps

In our recent posts, we’ve addressed the first four catastrophic errors that could lead not only to losing a significant client but possibly your entire company. Today, we're discussing the fifth fatal mistake: cash flow mismanagement.

Even when business seems to be thriving, the risk of cash flow issues persists. You must always be prepared for a dip in sales or an unexpected rise in expenses. A key strategy for maintaining your cash flow is ensuring timely payments from your clients. While it can be challenging, it's crucial to a successful business.

Here are some strategies to accelerate the payment process:

  • Always send invoices promptly and maintain accurate records for potential audits.

  • Understand your client's payment processing procedures and know exactly where to send invoices.

  • Identify who's responsible for order processing and payment in case you need to follow up.

  • Develop a follow-up procedure for delayed payments.

  • As a last resort, contact your client directly to inquire about delays.

  • Ensure the accuracy of your invoices before dispatching them.

Safeguarding your cash flow is equally important, and you can accomplish this by:

  • Keeping track of due accounts and their payment schedules.

  • Negotiating with your suppliers for the best possible prices.

  • Having a contingency plan with your bank.

  • Building your own network of investors.

These strategies not only protect your business's cash flow but also prepare you for fluctuations in client transitions and sales slowdowns. The process of identifying, attracting, and retaining your 'big fish' clients is vital for your success. It's essential to meticulously and accurately execute each of these steps.

If you need assistance at any point in the process of acquiring your 'big fish' or any subsequent major clients, our FREE consultation offers access to a wealth of useful tools, resources, and our expert business coaching team.
Anita Larsen

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