When Cash Is Slow: How To Survive Without A Profit

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Learn tips and strategies to increase income and improve cash flow.

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When Cash Is Slow: How To Survive Without A Profit

  1. 1. When Cash Is Slow: How To Survive Without A Profit Bernadette M. Johnson-Hairl President/CEO By The Book Accounting, Inc.
  2. 2. Cash Flow is……. <ul><li>the life blood of every business </li></ul><ul><li>Those that have it LIVE…..those that don’t DIE! (that’s another workshop…..”Why Businesses Fail……”) </li></ul>
  3. 3. Problems: <ul><li>Sales </li></ul><ul><ul><li>Too low </li></ul></ul><ul><ul><li>Wrong Clients </li></ul></ul><ul><ul><li>Wrong Prices </li></ul></ul><ul><ul><li>Not Enough Clients </li></ul></ul>
  4. 4. Problems: <ul><li>Receivables </li></ul><ul><ul><li>Too high </li></ul></ul><ul><ul><li>Inadequate payment methods </li></ul></ul><ul><li>Expenses </li></ul><ul><ul><li>Inadequate (or non-existent) records </li></ul></ul><ul><ul><li>Too high </li></ul></ul><ul><ul><li>Budget not monitored (or non-existent) </li></ul></ul>
  5. 5. Solutions: <ul><li>Sales: </li></ul><ul><ul><li>Increases Sales </li></ul></ul><ul><ul><ul><li>Ask for referrals </li></ul></ul></ul><ul><ul><ul><li>Cross sell to existing clients </li></ul></ul></ul><ul><ul><ul><li>Cross market with other businesses </li></ul></ul></ul><ul><ul><li>Right clients </li></ul></ul><ul><ul><ul><li>Redefine your target market </li></ul></ul></ul><ul><ul><ul><li>Use the appropriate medium </li></ul></ul></ul>
  6. 6. Solutions <ul><ul><li>Right prices </li></ul></ul><ul><ul><ul><li>Consider ALL cost of each job </li></ul></ul></ul><ul><ul><ul><li>Factor in the value of your time </li></ul></ul></ul><ul><ul><ul><li>Premium Service = Premium Price </li></ul></ul></ul><ul><ul><li>More Clients </li></ul></ul><ul><ul><ul><li>Diversify client bases </li></ul></ul></ul><ul><ul><ul><li>Market to your niche (less is more) </li></ul></ul></ul>
  7. 7. Solutions <ul><li>Receivables </li></ul><ul><ul><li>Extend credit sparingly </li></ul></ul><ul><ul><li>Collect sooner </li></ul></ul><ul><ul><ul><li>Formalize the billing process </li></ul></ul></ul><ul><ul><ul><ul><li>Send invoices with products </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Decrease payment terms </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Make “courtesy” calls </li></ul></ul></ul></ul><ul><ul><ul><li>Formalize collection process </li></ul></ul></ul><ul><ul><ul><ul><li>Send statements </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Send letters </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Hire a collection agency </li></ul></ul></ul></ul>
  8. 8. Solutions <ul><li>Expenses </li></ul><ul><ul><li>Keep good records (use software) </li></ul></ul><ul><ul><li>Eliminate unnecessary (or unjustifiable) cost </li></ul></ul><ul><ul><li>Do monthly, quarterly and annual cash budgets </li></ul></ul>
  9. 9. Contact Us <ul><li>By The Book Accounting, Inc </li></ul><ul><li>2330 Scenic Highway S, Suite 304 </li></ul><ul><li>Snellville, GA 30078 </li></ul><ul><li>400 Perimeter Center Terrace, NE, Suite 900 </li></ul><ul><li>Atlanta, GA 30346 </li></ul><ul><li>Office: 678-608-2775 </li></ul><ul><li>Fax: 404-420-2861 </li></ul><ul><li>www.bythebookaccounting.com </li></ul><ul><li>www.bernadettespeaks.com </li></ul>

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