Cash flow tips! Here are some more to help you and your business:
1. Force yourself to do accounts and invoicing. Yes it is boring admin work, yes it is much more enjoyable working on your business and finding new customers, but if you don’t invoice, you don’t get paid. Set aside an hour a day and actually enjoy the process of knowing there is literally no more profitable way you could be spending your time
2. Invoice as soon as possible. The same day is ideal, the next day is good, the following week is too long. Be diligent, be thorough and be consistent. If you are tardy with invoicing them, you can be sure they will be tardy with paying you.
3. Buy a $2 calendar, a red pen and a green pen and start circling. Green on days where you are due money, and red on days where you have to pay money. Put the amount and to/from whom and put the calendar in front of you as a constant reminder. You will be stunned at how effective this old-skool approach is.
4. Avoid relying on customers to pay on time. We have all been there- “So my $1400 power bill is due on Tuesday, but that’s ok as John is due to pay me Monday, so I’ll be fine”. Until John doesn’t pay on Monday and the power gets cut off and you cop a dishonour fee.
5. Love money. So simple, but you would be shocked at how many people don’t.