Friday, 31 January 2014

Turning your Business Around Part one

To SME Owners
Good to back at my blog, 2013 had the opportunity to help turn Four businesses around, so blogging time was limited.

In every SME I hear the words : I have cash flow problems.

When I check it out 95%, do not have cash flow issues ( I hate that word problem with a passion)
95% have COLLECTION MANAGEMENT issues, the business has money in its Debtors age analysis schedule. But is not being collected fast enough!

Most businesses pay their reps Comm, so the Rep should be part of the collection process, if the rep only gets paid once the deal is closed ,ie money in the BANK!

You only have a cash flow issue if you have less in your debtors to collect vs  the amounts owing to your supplies and the amount going out in a certain period for monthly operating costs.

So get you collection management on its game, yep you must spend time on this area.

Till next time may the Force be with you.