Tuesday, June 3, 2014

Six Ways to Start Generating More Cash Today!

Take a look at the following cash-generating techniques. These six tactics may be simple, but they’re extremely powerful.

1. Pursue accounts receivable. Phone clients who don’t pay and schedule a sit-down meeting to discuss outstanding invoices and establish a payment plan.

2. Attack work in process. Don’t hesitate to bill clients—-even if their projects aren’t going well. Tie payment to a prearranged monthly schedule, not project cost accounting or percent of work complete.

3. Get paid for changes. Prepare a change form, require authorization of every change, and bill the client right away.

4. Get paid in advance. Ask every client to pay in advance on all new contracts, or on phases of existing ones. At a minimum, ask for payment in advance for all expenses.

5. Stop work on losing projects. Assign principals to rapidly finish losing projects. And don’t make changes to them unless you know you’ll be paid.

6. Separate invoices for reimbursables and fees. Consider using three invoices instead of including reimbursables in the monthly payment agreement. Generate an invoice for subconsultants, an invoice for reimbursables, and an invoice for your regular monthly payment.

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