Jory Lamb almost went bankrupt when he started his business because of cash flow issues. The fear of that moment has never left Jory and now even though he runs a multi-million dollar company, VistaVu Solutions, he follows 5 key principles to ensure that cash flow is never a problem.
“It’s not what you make that counts. It’s what you keep,” says Jory and it’s this idea he shared with Canadian Business magazine during a recent interview.
So, how do you maintain accessible, short-term working capital?
Follow these 5 principles of cash flow that you can implement today:
- Bill early – your term starts as soon as you customers receive the invoice
- Bill often – invoice in increments that your customers agree to
- Go electronic – paper invoices require delivery, data entry and processing
- Offer incentives – even a tiny markdown will inspire customers to pay faster
- Pick up the phone – follow-up each invoice with a quick call to make sure customers don’t have questions
To learn more, read the article in Canadian Business or leave Jory a comment below and share your cash flow stories.
Still want more?
- Read our 6-Step Checklist to Reducing DSO for how you can get paid faster.
- Read 7 Ways to Maximize Cash Flow report ideal for any small business.
