Cash is king-so they say. If you work for yourself or someone else, you need to be aware of ways to improve the cash flow. Budgeting and collecting are not glamorous but they are both key to having a successful business. Working in a successful business is much more fun than working for a struggling one!
Stick to your budget. (If you don’t have one, make one now.) The budget is part of a business plan. You want to know exactly how much to spend on each large item you purchase and when you will have the cash to do it. Your cash flow projection coupled with your forecast will give you the proper timing for making purchases. The items you have budgeted for should also be part of the business plan.
Bill your clients regularly. Many business owners are so busy selling to new clients that they forget to invoice the clients they have already worked with. Put the task of billing your clients on your calendar and then stick to that schedule.
Get a retainer for your services before you begin the work. If you are going to be working with a client over a period of time, you will want to request some money up front before you begin to deliver the service.
Give a discount for early payment. You will be able to collect the money more quickly if you offer a discount for prompt payment.
Accept a credit card for payment. Although you have to pay the credit card company for this service, having the convenience of a credit card allows the client to pay immediately. Collection is now the problem of the credit card company.
Use your own credit card to finance purchases but do it cautiously. If the interest rate is low and you can pay the credit card company back relatively quickly, credit cards are often a good way to even out your cash flow.
Establish a line of credit with a bank. This is relatively easy to do so long as you have good credit and it gives you a cushion of cash when things are tight. Sometimes the bank will offer a really good rate to encourage you to become their customer for other banking services.
Put the cash that you have on hand in an interest bearing account. No reason to have cash sitting in an account that doesn’t accrue much interest. As cash grows consider money market accounts, CDs and savings accounts.
Pay your outstanding bills judiciously. Notice which vendors are willing to wait for payment and which will charge you interest if you are late. Schedule payment to maximize the cash in your account.
Consider getting an expert to watch your cash flow. Have someone (financial advisor, accountant, bookkeeper) available to run financial reports each month so you know exactly where you stand in your business.
Top Ten Tips for Improving Your Cash Flow - To learn more about this author, visit Alvah Parker's Website.
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George Ludwig
George Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance.
Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson.
His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more.
George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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Alvah Parker
(Visit Alvah's Website)
Alvah Parker is a Practice Advisor (The
Attorneys’ Coach) and a Career Changers’
Coach as well as publisher of "Parker’s
Points", an email tip list and "Road to
Success", an ezine. Subscribe now to
these free monthly publications at her
website www.asparker.com/samples.html
Alvah Parker began her career as a high
school chemistry teacher. She later
transition to a sales career at AT&T. As
a Sales Professional at AT&T for 15 years
she was elected to the prestigious Counsel
of Leaders for the top 3% of the sales
force. After leaving AT&T she
transitioned into a coaching career and
also volunteers as a SCORE Business
Counselor where she advises and counsels
small business owners.
Parker’s Value Program© enables her
clients to find their own way to work that
is more fulfilling and profitable. Her
clients are attorneys and people in
transition who want to find work that is
in line with their own life purpose.
Alvah is found on the web at www.aspar
ker.com. She may also be reached at
781-598-0388.
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