A Digital Strategy to Maximize Cash Flow Right Now

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"Know your numbers" was the top takeaway from last weeks Small Business Consulting Services Group Meetup here in Jacksonville. Richard Scherzer of About Floors N' More shared classic business management principals with the entrepreneurs in attendance.  Richard's tough love mindset and timeless truths brought audible gasps from the crowd. Not surprising when you consider the contemporary mindset is that all you need to succeed today is a website, a social networking feed and a killer app.   

Richard is right. It takes discipline to sustain success in business. I believe the entrepreneurs are also correct, it takes modern tools and techniques to connect with new clients and compete in the digital age. The truth is your success in the future requires a combination of the best of both mindsets.

Business Rules and Digital Tools

Maximizing cash flow is one of the most important business rules to ensure success.  In fact, it's one of the primary Leverage Principals we focus on when working with business owners or buyers. It's a great example of the power of combining the truth of business rules with the leverage of digital tools. If you are a business owner looking to get paid faster with less hassle, these tips are for you.

At Leverage Unlimited we create client success in three areas. Acquiring the right tools. Building better teams. Streamlining business processes. To maximize your cash flow, document your Accounts Receivable process. Create a timeline of all the steps and durations. Don't forget to include surface mail delivery, invoice aging, bank deposit holding, etc. Make sure you are sitting down when you total up the elapsed time. Next look for all the places you can eliminate all that wasted time. Electronic invoice delivery and online payment systems can cut your receivables aging by 75%. 

With a streamlined process, research the digital tools that enable the process. Mobile card readers are now available for swipe, chip reader, and tap-to-pay. We recommend clients explore PayPal for electronic invoicing, online payment, and requesting a PayPal debit card to eliminate waiting for payments to clear, giving you instant access to your hard earned cash.

Beyond Accounts Receivable

Streamlining your AR process is a big step in the right direction. Another opportunity is building a payment strategy that sets the payment expectation from the start of an engagement. that eliminates the hassle of invoicing for both you and your client. A member of our ResourceArmy, Sara Hansen of Phoenix Online Solutions requires online recurring billing to eliminate the hassle of invoicing for you and your client. The client doesn't have to remember to pay Sara, and Sara no longer chases clients for payment. 

The bottom line is this. You have to wear a bunch of hats to run a successful business. Bill Collector shouldn't be one of them. 

Resources

Tips for Streamlining Accounts Receivable