A week of MISTAKES: Day 5

Photo by Dan Bachman

This week we have looked over the 5 big mistakes that can devastate a client deal. The first four included:

  1. Not meeting the client’s expectations
  2. Mishandling a client crisis
  3. Taking on more than you can handle
  4. Putting all your eggs in one basket

Our week of mistakes series is wrapping up today with our final BIG mistake:

5. Up Cash Creek Without a Paddle

Even when business is good, there’s still a change of running out of cash flow. A company must always be prepared for a slow in sales or a surge in expenses. A huge key to balancing your cash flow is making sure your clients are required to pay on time. This is essential to a successful business.

Here are a number of tips to speed up the payment process:

  • Always send invoices on time and adjust your records for potential audits.
  • Know how the clients process payments within their business and learn precisely where to end the invoices.
  • Find out who is in charge of processing orders and payments so you know exactly who to contact if needed.
  • Have a follow-up procedure in place.
  • Always make sure your invoices are accurate before sending them out.

It is always important to make sure your cash flow is protected

  • Always know which accounts need paid and when.
  • Negotiate with your suppliers for the lowest cost possible.
  • Have a blank contingency plan in place.
  • Build your own investor network.

These are great ways to protect the clash flow of your business and prepared for client transitions and slow sales.

Although we are at the end of discussing the BIG mistakes, never stop perfecting them. Continue to learn, plan and grow to avoid these mistakes.

“Everyone needs a coach.” Google CEO

Until we talk soon,

Ormond Rankin

ormondrankin@actioncoach.com

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