TweetFixing cash flow issues is something that is discussed at great length in business school but the lesson doesn’t hit home until you run into it in the trenches.
If your cash flow issue is that you are not able to make any sales, try reading this post or this post —where I talk about creating a pipeline of prospects turning to customers using online content.
This video speaks about what to do when you have sales, but you are still having cash issues. This occurs because you are usually executing on work before you are paid.
Sometimes, as I point out in the video, it is simply a matter of restructuring your marketing materials, bids, proposals, sales process, etc to ensure that you get at least some portion of payment up front.
Also, consider offering some other kind of product/service that requires up-front cash payment. This may be an information product, a monthly seminar, etc. This may give you enough operating cash from month to month and allow you to stay afloat while waiting for sources of cash that are 15 or 30 days in the future.
You need cash to operate. This is certain. What do you do to ensure that you have ample cash from month to month instead of just an impressive figure in Accounts Receivable.
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Good Points here, Russ.
Let me add that you should always do everything possible to collect money that is owed to you.
If you agreed to a product/service being purchased, and you’ve fulfilled your end of the deal, they owe you. No ifs, ands, or buts about it.
Let them set up a payment plan, with interest.
Take them to small claims court if necessary. Unfortunately, some people will always wait till they get served a notice that you’re going to sue them. You still must do it because they’ll try to stick the next Tiny Mighty Business.
Not paying you is not an option!
Thanks for the Post, Russ.
(Nice closing, also!)
@Fred — NOTE TO SELF: Never stiff Fred Miller.