Wealth Vision Mastery Academy

Today, I am going to share with you the reason why it is important that you are not too lenient with your customers. This important concept forms Rule Number 2 of Managing Cash Flow in Your Business. Summary - Be direct and fair with your customers without being seen as a pushover. A clever but polite invoicing strategy will usually get you a long way. But don’t be afraid to take more formal action if you need to. Keep a close watch on your accounts receivable turnover at all times. If it’s trending up, it might be time to step up your efforts at chasing payment. As receivables age, their quality goes down, so you should act sooner rather than later. Cost of Acquiring and Retaining a Customer As we all know, obtaining customers can be time consuming and expensive. The cost of customer acquisition versus customer retention could reach as high as 700%, according to a report by Frederick Reichheld of Bain & Company as below: Acquiring a new customer can cost 6 to 7 times mor

Welcome to a new series of blogs for 2018 on managing Cash Flow in your business. There are five simple rules that will help you manage your company's cash flow better. Those rules are: Rule Number 1 - Keep your books up to date and accurate. Rule Number 2 - Don't be too lenient with your customers. Rule Number 3 - Keep your accounting simple. Rule Number 4 - Keep your business and your personal finances separate. Rule Number 5 - Build a cash reserve. Today, I am going to delve deeper into the first rule - the rule of keeping your boos up to date. Rule Number 1 - Keep your books up to date and accurate.  Often i get asked "why do i need to keep my books up to date? It is too time consuming and i cannot see any value in it." My simple answer to that question is: Your cash flow is only as good as your accounting and reporting.  Don’t feel alone, financial record-keeping is the bane of existence for most small business owners and managers. When

Hello fellow entrepreneurs, Is money flowing out of your company faster than it's coming in? Take a moment to think about the following three questions. Do you manage cash flow successfully in your business?  Do you improve your internal process so as to maximise your cash flow?  Do you forecast your cash flow for the next three months? If you answered yes to at least one of those questions, then you are on the right boat. Trying to run a business without managing cash flow is like trying to paddle a boat without an oar. Even if you succeed, it will be an upstream exercise guaranteed to wear you out. Cash flow is important for all businesses, but it is critical for early startups. If you cannot manage your cash flow within the first year, you will likely not survive the second year. The management of cash flow is one of the most challenging tasks for small business owners. Having to continually nudge customers for payment uses up valuable time and can be dishearte