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Hello!
Most business failures are attributed to cash flow failures, but did you know that cash flow itself is never the cause of business failure? Cash flow, good or bad, is always and only a result of something else. You won't change your cash flow by focussing on the result, so start focussing on the underlying causes.
Competition: To save cash flow on coaching or mentoring, see our competition at the end of this editorial.
I learned a creative technique to improve cash flow last month when following up an overdue invoice with a client. But first, here's what's in Fulfilment this month to help you manage your cash better at both business and at home:
- Featured workshop: Budgeting for Business Managers: This one-day workshop gets you competent and confident to plan and manage your business budget well.
- Back to Basics: Positive Personal Cash Flow: 10 tips from Tania Kapp to keep your home finances healthy all month long.
- Turning Customers into Cash: Greig Whitton shines the light on 2 often overlooked tactics for improving cash flow from debtors.
- Book Review: Fifteen Business Calculations: Alex Noel reviews one of Lesley-Caren Johnson books - ideal for the time-challenged entrepreneur - that help keep you in charge of your business' money.
Back to that "lesson" from my client on improving cash flow. I implemented our system for debt collections by phoning up the client the day after the debt was due. Their story: payment was held up because we didn't quote the purchse order number on the invoice.
On the face of it, this could have been simply good financial governance. But it took a further 2 weeks for the procurement department to give us a PO number before we could re-issue our invoice.
A great, albeit sly, technique to benefit their cash flow, but it might be un-subtle that this is a cash flow trick if your client has fewer than 10 employees!
Oh yes, after we were paid, I did 2 things: (1) I asked for them for the courtesy of calling us if there's any impediment to paying on time and, (2) following our own advice on better to-do lists in February's Fulfilment, I've set a recurring Outlook task to request their PO number a month in advance.
Entrepreneurs, add this creative lesson on improving cash flow to our highly popular article on managing cash flow in tough times: Fulfilment #21: 40 Ways to Survive the Recession.
Enjoy the tips and stories in this month's newsletter and, remember, if you want more than our stories and workshops, you're welcome to explore mentoring, coaching and training with ProMentor - our first consultation is always free.
Until next month's Fulfilment, all the best!
Brent Combrink
Fulfilment editor and ProMentor's founding owner
Cell: +27 (0)82 425 2708
Email your letters to: brent@promentor.co.za
PS: Competition for free coaching or mentoring:
Be the first to email me with your list of where our 53 cash flow lessons can be found in this month's newsletter and win yourself a free 90-minute coaching or mentoring session valued at R2,025! This competition is open to anyone except ProMentor Associates and, if you're in Cape Town, we'll come to you, otherwise the phone call is for the winner's account.
Featured Workshop:
Budgeting for Business Mnagers
A fundamental skill for any well-rounded business manager or entrepreneur is being able to plan a realistic budget, whether for expenses or revenues, and manage that budget. This one-day workshop gets you competent and confident to do this well.
Topics include:
+ Budgeting as part of business planning +
+ Estimating techniques +
+ Distinguishing between budget, forecast and actual +
+ Key indicators, controls and reports +
+ Changing the budget +
Available at your offices and scheduled at your convenience
in Cape Town, Gauteng and KZN.
Investment for up to 10 delegates:
R10,500 full-day
R6,500 half-day
Includes all notes and pre- and post-workshop briefings
Excludes VAT, venue and catering
To book this or other topics, call ProMentor at 021 683 7575
or email info@promentor.co.za
Back to Basics: Positive Personal Cash Flow
By Tania Kapp
26 March 2009
When I think of personal cash flow, that Salticrax TV ad comes to mind: the biscuit's toppings are mouth-wateringly lavish at the beginning of the month but, at month-end, the biscuit is dry with not even cheap plonk to wash it down! Try these 10 tips to let your lavish toppings last all month.
Read more...
Turning Customers into Cash
By Greig Whitton
26 March 2009
If you run your own business, then you've probably been frustrated in trying to get your customers to pay their accounts on time. Payment in advance, or upon delivery, is not an option for every business. And those that extend credit terms to their customers expose their cash flow to the risk of late-paying clients and bad debtors. What alternatives are there to collecting these debts yourself?
Read more...
Book Review: Fifteen Business Calculations
Author: Lesley-Caren Johnson
By Alex Noel
26 March 2009
As an entrepreneur, I can't afford not to take responsibility for my business assets and records. But I find that financial statements and calculations can boggle the mind and that most texts on the subject are dry and complex. Plus I'm just too busy running the business... enter the Be A Winner pocket book series.
Read more...
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