Successful growing Businesses and the cash flow problem
The Cash Flow Problem…
Business and financial advisers all stress how important it is for a growing business to have strong cash flow…
…but what are the practical steps you need to take to have strong cash flow?
How I Solved My Cashflow Problem
In my first year of business, and growing rapidly, my biggest customer couldn’t pay. Potential disaster.
I was days away from closing the doors.
Luckily I got paid and my business survived. But I wanted it to be really successful so created a simple 5-step process to make sure all our customers paid on time in future.
5 Simple Steps = Success
From that day, cash flow was always strong. The business was very profitable and grew to a $12 million turnover. I never had to borrow a cent and we never lost a customer.
I sold that business 15 years later and retired to France.
It was only after I sold my business I realised that simple 5-step process was one of the key reasons for its success.
“I was heavily involved in the acquisition of Jan’s company, Credit Recruitment. Jan was not good; she was exceptional at managing cash-flow. Her process comes from absolute experience and knowledge that is why it is effective. Nothing beats experience, it’s a matter of fact.”
Senior Executive, Michael Wilmot Business Management Services
How the 5 simple steps changed my life
A Success Story
After spending 15 years building my business I made a successful 7 figure exit.
I now spend half the year in south-west France and the other half in Sydney Australia living the life I always dreamed of.
However it wasn’t always like that. When I first came to Australia I was newly divorced and had little more than the clothes I’d brought with me …no home, no car, no job and just a few thousand dollars.
Needing to make a change in my life, I started a recruitment company specialising in credit control and collection positions.
Poor Cash Flow Almost Cost Me My Business
Fast forward a few years and the business was doing well. Sales growth was good but I had lost focus on managing my debtors. After a 20 year career in credit control, I should have known better!
The wakeup call came when my main client was taken over and all their bank accounts frozen. At the time they owed me $100,000. My invoices were no longer being paid. If I couldn’t sort this out my business was finished, and I would have no choice but to go bankrupt.
It was terrifying. I risked losing everything I had worked so hard for.
The 5 Step Solution
It was during this painful period that I developed a way to negotiate with the new company that saw all my invoices paid. My business not only survived but went on to thrive.
Lesson learned. I never wanted my business – or me – to face a risk like that ever again. I developed and implemented a 5 step, easy to implement GET PAID! process.
From that day, every customer paid us in 30 days or less. If I can do it, so can you.