Cash Management Secrets

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

Who Should Care About Cash Management

Cash management isn't just for bean counting types to worry about. Too many business owners and sales managers focus on the wrong "numbers game" and drive good businesses into the ground.

• Overhead increases in areas where it's not necessary, you have to sell more to do less, your burn rate increases;
• You spend too little or too much to acquire a customers, doing work without profits is insanity;
• Not sure how much you can afford to pay for talented sales people, marketing efforts, or even service staff;
• Your competition buys market share out from under your existing accounts, and there is nothing you can do about it;
• Staff are burdened and frustrated with overdue accounts who have no intention to pay, even after you call them repeatedly;
• You have fewer and fewer days of relaxing free time as you worry about the daily struggles of your business;
• Word gets out that you're slow to collect, this increases a temporary boost in sales from people who won't pay;
• While you struggle to collect money due you, your overall receivables shrink and money isn't available for selling;

You can prevent these problems by doing two things (1) having a strong cash generation strategy, and a (2) strong cash collections strategy. I'll share more on developing each in another article.

Posted by Justin Hitt on January 31, 2007 11:56 AM | Permalink

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