To help your business survive and thrive during these uncertain times, here are some examples of decisions around your cash collections that you could take to help make your cash last longer and your business survive and thrive.

The key here is what is called the cash conversion cycle.  This is the time it takes for a dollar spent on something (wages, marketing, products, rents etc) to make its way through your business and come back into your bank account.  The better your cash collection cycle, the better it is for your business.

And this is not just about collecting your cash quicker from your customers.  Things you can do here include:

1. Can you do things quicker? For example, if you are selling a service, can you deliver that service quicker so you can invoice your customer quicker.  If you are selling a product can you make it quicker so you can deliver it quicker and invoice quicker.  If you finish one project quicker, the sooner you can start the next project and bill that customer.  This is a trap I see all the time, business want to start the next project before the last one is finished.  But if you can’t bill till the project is finished, you are better off to finish a project properly before starting the next one.
2. Avoid mistakes. Mistakes are one of the biggest reasons why customers pay slow.  Mistakes include the customer not getting what they wanted, or even things like the invoice is wrong.  An unhappy customer is not rushing to pay you.  Reducing these means happier customers who pay better.  And if you have customers who are paying late ask why.  How can you fix mistakes in your systems and processes if you don’t even know they are there.
3. Don’t wait till the end of the month to invoice. Invoice as soon as possible and make sure you set a specific due date on your invoice.
4. Can you get direct debits in place?
5. As for payment sooner, possibly even upfront.
6. What else can you do to get your customers to pay you quicker.

Look out for more strategies from my Business Survival Guide to ensure your business can survive and thrive during these uncertain times.

Need help improving your cash collections?  Use the below form to contact me or call me on 0412 227 052.

Contact Wayne Wanders for your FREE Business Survival Session

To ensure I help your business specifically, the best approach I have found is to have an obligation free session with you.  In this session we will review your current business in a factual and objective manner, to better understand the challenges that you face.  And this session does not need to be face to face.

At the end of this session, you will have multiple ideas on how your business can survive and thrive in these uncertain times.

Simply fill in the contact form below or email me at wayne@aRealCFO.com.au or call me on 0412 227 052 to organise one of these obligation free sessions.

To get help you successfully navigate your way through your financial challenges so your business can survive and thrive in these uncertain times, simply use the contact form on the left to email Wayne or call him on 0412 227 052.

Let Wayne Wanders, a fully qualified and experienced CFO, help you successfully navigate your way through your financial challenges so your business can survive and thrive in these uncertain times.

Wayne Wanders, A Real CFO

wayne@aRealCFO.com.au