WHAT’S YOUR NO. 1 CASH FLOW MANAGEMENT TIP?
Entrepreneurs talk about preparing for lean times and slow seasons
“Be conservative in revenue projection. We use very conservative calculations when projecting future revenue, so any cash flow surprises are pleasant ones.”
Trent Oster, president of Beamdog, Beamdog.com
“Always manage your receivables. Monies that are owed to your company that go uncollected for an extended period of time can seriously affect your cash flow. You will still have operating expenses to meet during that time whether the revenue is received or not. Unmanaged receivables can collapse a small business.” Deborah Cox, president of Microbusiness Training Centre Inc., microbusiness.cam
“The best way to manage cash flow is to not be in denial about it. Financial statements look at what you’ve already done, not what’s coming up, so it won’t help you anticipate bottlenecks. When it comes to cash flow, this proverbial statement is best taken in reverse: you are MUCH better off to ask permission, than to beg forgiveness.”
Angela Armstrong, president and founder of Prime Capital Group, pcclease.com
“Learn how to sell. Cash flow comes from being able to convince customers to pay you for your service. And I’m not talking about marketing plans, I’m talking about a real and gritty sales plan. Something often overlooked particularly when start-ups create their business plans. Selling is not the same as marketing.”
Colleen Madsen, president of Colleen Madsen, colleenmadsen.com
“Invoice in a consistent rhythm and quickly follow-up on past due invoices to keep accounts receivable minimal. To do this well I recommend having a great bookkeeper that you can trust professionally dealing with accounts receivable.”
Bryan Smith, president of Bluetrain Inc., bluetrain.ca
“Pay bills immediately or in advance to get them off your books and secure the future, and treat any changes in the flow with caution. Income maintains most of its power only when in your possession.”
Douglas Dollars, project manager of Fort Cozy fortcozy.co