EDITORIAL FEATURE
Proactive
Cash Flow Strategies
By Patty Block
H
enry Ford once famously said:
“Vision without execution is just
hallucination.” I love this quote because it’s funny and it’s true! While
revenue production is the core goal for
every business, the real magic is in understanding and managing your cash cycle. You can’t execute without cash.
Many small businesses struggle to appropriately price their services, define
their billing and collection terms, and
manage the cash flowing through their
companies. If you are not developing
and implementing cash strategies, you
are leaving money on the table.
Early warning signs of cash flow problems:
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You struggle to pay your bills.
You are afraid to hire staff because
your revenue is irregular.
You may be charging too little and
over-delivering on services, so client
accounts are not profitable.
You have trouble collecting what is
owed from clients.
You are embarrassed to admit you
are in financial trouble.
You suffer so much stress around
money that you can’t focus on strategic issues for your company or for
your clients.
Consequences of ignoring the
early warning signs:
• You have unsteady revenue.
• Your relationships with clients and
vendors suffer.
• You are unable to attract or retain
high-quality staff.
• You have unprofitable accounts.
• Your personal and business credit suffers.
• Your company growth is stunted.
accounts that are se