Catch this week’s podcast episode here. It is about 7 1/2 minutes long. Here is what is covered:
For all of you who have just made your first sale, congratulations! You should jump up and down and dance a jig at your accomplishment.
Very soon, however, you will discover that a closed sale does not equal money in your bank account. Based on personal experience and that which I have learned from smart friends, I share some guidelines for making sure that you plan and contract for a stable cash flow in your new business. They include things like:
- Carefully study your client’s financial terms, conditions and processes
- Plan contracts carefully, with payment milestones clearly identified and contingency plans developed if the scope changes
- Treat your accounts payable contact with ultimate deference and respect, lest you reap the wrath of an accountant scorned
I won’t share the gory details of what I am dealing with now in my hubbie’s business, but trust me that I am very hot on the topic of cash flow today. Please share your horror stories, best practices and tips for how you manage cash flow in your business, or what every newbie entrepreneur should know about it.