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Christopher Hytry Derrington

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Make It Rain: 10 Powerful Ways To Boost Your Business' Cash Flow

Posted: 07/28/11 03:06 PM ET

Give your business a cash transfusion!

Cash flow is the blood that lubricates the components of your company. When the cash runs out, the gears lock up and the machinery of your business is in trouble.

Improving your cash flow is the same as increasing sales volume without hiring more sales people or staying open longer! You are essentially creating free money!

Cash flow inefficiencies and problems are not limited to startups and early-stage companies. Too many times, companies don't know or don't understand the importance of cash flow. It's all too common for business executives to grossly underestimate the amount of time and capital necessary to reach and maintain cash flow break-even, causing many promising businesses to shut down prematurely.

Check out the 10 most powerful techniques I've used to maximize my business' cash flow. These techniques can be done all at once or in phases, depending on your business (and your courage).

Please share with our readers other good cash flow techniques that have worked for you in the comments section.

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Unless your Company is in a Business to Consumer (B2C) industry, your standard payment terms may be net 30 days, meaning payment is due 30 days after the receipt of invoice of goods/services.


Changing your terms to net 15 days means you will get your cash and profits twice as fast. Many times I get a look or statement of disbelief when I share this technique. "That won't work in my industry," they say. "I'll lose customers." Then I gently ask, "Have you tried?"

When I started Rural America in the rural onshoring outsourcing industry, I was told by people inside and outside the industry that Net 7 days would not work in outsourcing. We have been using it for three years without losing a single customer. We have made exceptions for large companies that can't process invoices that quickly, but otherwise, no problems.

If net 15 or net 7 is too radical a step, try net 30 / net 10 with a 2 percent deduction, meaning you are offering your customer the opportunity to deduct 2 percent of the invoice if they pay within 10 days.
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