HOW TO BUILD
6 MONTHS OF CASH FLOW
Step by Step Guide
Increase your price.
Send invoices as soon as you can.
QUICK THINGSYOU CAN DO NOW!
Make it easy for clients to pay you.
Know the accounts payable team.
Break down the invoice into smaller
25% upon design approval or [X Date], whichever
25% upon project approval or [X Date], whichever
CHANGE CLIENT PAYMENT TERMS
Know what their competitors are offering and you
can leverage their payment terms.
Guarantee a certain volume of business within a
certain time frame.
Setup automatic payment with a credit card.
CHANGE VENDOR PAYMENT TERMS
Description of service.
When the work was performed.
Who the work was for.
Possible PO number.
PROVIDE DETAILED INVOICES
THE CASH FLOW WORKSHEET
Identify goals of the business.
Identify revenue shortfalls.
Rank the priorities that need to be focused on.
Accurately project out how long your cash will last.
INPUT THE STARTING BANK BALANCE INTO THE WORKSHEET.
WEEKLY SALES OPPORTUNITY MEETINGS.
DETERMINE WHICH OPPORTUNITIESYOU NEED TO CLOSE.
•Only Input opps that have >35%
chance of closing in the next 90
•Stage III = opps > 75%
•Stage II = opps 35-74%
FIGURE OUTYOUR ACCOUNTS RECIEVEABLES AND WHAT IS LIKELY TO COME
IN THE NEXT 30 DAYS.
TAKE ACTION ON ACHIEVING THE GOAL & DEVELOP AN ACTION PLAN.
Repeat each month.
Gauge where the business is and where it is headed.
It is always easier to slow a slow car up rather than a car ﬂying down
the hill. If you do this, you will catch cash ﬂow issues and have plenty of
time to take every measure possible.