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Check out this article: Six Ways to Smooth Cash Flow

I’ve written articles  and given presentations on cash flow management. I thought this one was interesting because it’s written by a small business owner who actually implemented the specific cash management techniques he writes about in this article. It’s always nice to hear it “straight from the horse’s mouth”. Check out the article below.


Six Ways to Smooth Out Uneven Cash Flow

How one small-business owner made strategic changes when finances became unpredictable. By Scott Gerber

Four years ago I began to notice that my business’s cash flow would, like clockwork, experience two rough periods during the year. The first was between December and February and the second from July to the beginning of September. Specializing in producing short promotional videos known as “sizzle reels,” we had plenty of client work in-house during those periods but were lacking the funds to fuel our overhead. The problem was that many of our clients were taking up to 60 days to complete payment on their invoices.

I began working with my team to come up with creative ways to help avoid these financial ruts. Here are the six steps we took to correct our cash-flow woes without losing personnel or productivity:

1. Adjust customer-credit and payment terms. Initially, we requested that clients pay a 25 percent down payment for projects. But projects for smaller clients often took longer and so final payments for these were longer in coming. To remedy this, we increased the initial down payment for first- and second-time clients to 50 percent. We also increased the down payment percentage on our longer-term clients by a few points.

Finish reading the Entrepreneur magazine article.

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About Tiffany C. Wright

Hi! I,Tiffany C. Wright, am the author of the ebook, "Help! I Need Money for My Business Now!!" and the book "Solving the Capital Equation: Financing Solutions for Small Businesses", available on Amazon. I am the president of Toca Family Business Services, a short-term & project-based interim management & strategic and financial advisory firm, located in Atlanta, Georgia. In the past five years I've helped small and medium companies restructure and obtain over $31 Million in financing and a similar amount in purchase orders and contracts. I have an MBA in Finance and Entrepreneurial Management from the Wharton School of Business at the University of Pennsylvania and a B.S. in Industrial and Systems Engineering from The Ohio State University. Personal: I enjoy investing. I am a prodigious reader of everything from business books, magazines, and newspapers to horror and popular fiction. I read 4-6 books per month. I also love to travel. I've been to 33 countries on 5 continents and lived in Japan for 2.5 years and aim for a foreign locale twice a year. I am also an athlete and run track on the Master's Circuit. The highlight was placing 7th in my age group in the 2007 World Master's Track and Field Championships in Italy.

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The Resourceful CEO, Tiffany C. Wright

the president of Toca Family Business Services, a strategic and financial advisory firm which provides short-term & project-based C-level management. She is the author of Solving the Financial Equation: Financing Solutions for Small Businesses, available on Amazon.

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