The last 2 posts covered the first four of the killer mistakes you could make that will not only make you lose your fish, but possibly your entire company. Today we’re going to explore the fifth killer mistake:
Up Cash Creek Without a Paddle
Even when business is good, there’s still a chance of running out of cash flow. You must always be prepared for a slow in sales or a surge in expenses. One of the keys to balancing your cash flow is by requiring your clients to pay on time. This may seem like a nightmare, but is absolutely essential to a successful business.
Here are some tips to speed up the payment process:
- Always send invoices on time and adjust your records for potential audits;
- Learn how the client processes payments on their side and find out precise location to send invoices;
- Find out who’s in charge of processing orders and payments, so you know who to contact if required;
- Have a follow-up procedure in place, just in case
- As a last resort, call your contact with inquiries;
- Always ensure your invoices are accurate before they are sent.
You also need to make sure your cash flow is protected. You can do this by:
- Always knowing which accounts need to be paid and when;
- Negotiating with your suppliers for the lowest possible cost;
- Having a bank contingency plan in place;
- Building your own investor network.
These are all great ways to protect the cash flow of your business and prepare for fish transitions and slow sales. These last few lessons are all about finding and catching your big fish clients. Your clients are essential to your success and you need to take the time to work through each of these steps carefully and efficiently for the utmost success.
If you need help with any step of the process of catching your fish or subsequent big fish clients, please reach out to me for assistance.