Cash Management Secrets

Proven cash management strategies that improve cash flow, collect past due money, and increases profits in tight credit markets.

Know What You Want Before You Start

There are many valuable things cash flow can buy but none so sweat than that which you desire. Too many business owners focus on, or are distracted by getting the cash flow rather than what the cash flow brings them.

Your desires are the result of successful cash management not the cash flow itself. When you focus on what you want, you'll tend to use systems known to work rather than reinventing the wheel each time.

Successful cash management is like going on a trip. First, plan your course noting the places you want to go, the things you want to see. Next, you develop a route or plan, including milestones along the way. If you are traveling by car, you check the tires, fluids, and fuel. Finally, you jump in and go!

When you take a trip to a specific destination, you don't redesign the engine, wheels, or draw your own map. You don't take a round about route when a direct one will do. And, you certainly don't just wing it. You follow a plan, built on a proven path.

Unfortunately, business owners, and your staff, try to do things a new way each time. They scheme to make things better, rather than just jump in with proven cash management methods, collections tools, and proven insights. Setup milestones for your staff, milestones that help you reach your desires.

You'll get to your destination faster with deliberate action more than contemplation or wishing. Remember, bad things will always happen, but how will you know what you want if you don't focus on your desired results first.

When you focus on the non-monetary results you desire, you are motivated and clear on the cash flow necessary to reach your goals. This method helps you focus on exactly and specifically on the right amount of effort.

Start by making a list of everything you want with reasons why and then note what each will cost. From these figures, adjust your earning targets and cash flow forecasts. Two things we'll cover in another lesson.

Posted by Justin Hitt on December 20, 2006 4:48 PM | Permalink

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