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BHW Cash Flow Management

Discussion in 'Making Money' started by steelballs, Nov 28, 2012.

  1. steelballs

    steelballs BANNED BANNED

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    BHW Cash Flow Management
    [​IMG]

    Getting Paid for Your Work and Services

    This is how it works in my opinion, one provides a service and you get paid ? plain and simple

    ? Deliver the service ? Buyer Pays ? No exceptions

    ? New clients with no track record and reputation ? Request in 100% Advance or at least 50% down payment deliver half of the service then get the other 50% outstanding amount before completing the work

    ? Established clients agree on negotiated terms that are acceptable to both parties

    ? Have a benchmark figure on services you provide on monthly paid on completion basis ? like if for example your company CPA says that you have to be paid when a service reaches a figure say $500USD as you have to pay wages - electric ? water et al. Then remember you need tight financial control on trading revenue!

    ? Why! That is easy because if you have to go to the bank to get a trading overdraft ? believe me that does not solve your cash flow problems. It just means you have got on board another overhead that costs you money. Because when you buy money from the bank or lender it all has to be paid back on a cost plus basis. Caveat Emptor ? Buying money is expensive

    ? To wind up keep tight control on all your business revenue streams ? meaning payments in and payments out

    BHW Cash Flow Management?

    All comments welcome?
     
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  2. formosa

    formosa Regular Member

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    great ... i think cash flow management is very important(esp when you have limited capital) for the success of IM
     
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  3. kasheshe

    kasheshe Regular Member

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    It's great to at last talk something business related on this forum. Rather than the usual "My journey to $1 a day" threads.

    If we are planning on making a living from IM then we have no choice but to be good business managers which means super good at cash flow management.

    I'll give my bad experience.

    I was making some 3k a month from my clients. All I would do was to buy, buy, buy more and more software instead of using the cash to scale up on the operations that got me the clients in the first place.

    No it wasn't the software that gave me the business, it was how I talked to them. So you can imagine what happened after I lost 3 big clients very fast. There was no cash to even manage the software I had acquired.

    My motto now is very simple. I must have cash to run my business. I've realised that some of the best companies out there, not including SEO companies, have survived because they had cash at critical times in their business. As other companies paid to pay rent, they paid theirs. The competitors dies off and they got the business that would otherwise have gone to their competitors.

    I know it sounds like a cliche. But try and get at least 3 months of operating expenses in your business very early on. Beg, borrow and steal it if you have to. But get it. 90 days is enough for anyone good in SEO to cover some of the major overheads in their business.

    I would love to hear your ideas.
     
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  4. illfounded21

    illfounded21 Senior Member

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    Cash flow is equally as important in big business too. Many a big business has run into trouble due to cash flow problems.
     
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  5. alternatesword

    alternatesword Jr. VIP Jr. VIP

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    Also try to invest atleast half of your revenue in business. Also build two or more income source, if anyone source fails another will help you to stand up.
     
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  6. LakeForest

    LakeForest Supreme Member

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    Sidenote: Look at the original post and see how it was formatted, it is an great example of how to make a unique blog post that will generate traffic without the usual ~500 words. Always add an image to these kinds of posts.

    Back to topic: One way I keep on top of things is to pay my expenses for the year as soon as sales comes in. So, like by February, all the fixed costs I had from the previous year are taken care of and no worries about meeting bills for the following months. From then on, I only have to worry about generating sales and expansion. I don't like bills, and I especially don't like bills that are waiting to be paid. I'd like to have the discipline to pay for multiple years ahead of time though, so I will start. EDIT: lol I should have read the post up higher, I kind of said the same thing in this post.

    EDIT: Ok then, time for something other than expense management: Debt management! Want a great way to expand? Get a line of credit. If you know how well you work, and you know within a month you can generate sales, get a line of credit or a credit card. The ability to at least have the chance to expand your business if you would like to take the risk with the knowledge you must succeed is exhilarating because you chose to take that loan, so that means you're truly invested body and mind.
     
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    Last edited: Nov 28, 2012
  7. GauravJ

    GauravJ Power Member

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    Someone has very correctly pointed out......
    It's tough to attain success but what is more tougher and important thing is to maintain on that build up on that level!!!

    similarly making big earnings is tough but what is more imp is Effective use of that....:)[​IMG][​IMG][​IMG][​IMG]
     
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    Last edited: Nov 28, 2012
  8. steelballs

    steelballs BANNED BANNED

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    Thanks LakeForest appreciate your valued comments

    I just try to make posts and OPs to layout and look readable - I am just an ordinary Joe who like things plain and simple!

    Thanks Again :cool:
     
  9. LOL-Blaster

    LOL-Blaster Regular Member

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    I think you got it backward
    Buyer Pays - Deliver the service - No exceptions.
     
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  10. Beingakrant

    Beingakrant BANNED BANNED

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    Excellent way of presenting BHW's cash flow management. Managing the cash flow is an art, which each one of us must know in order to excel in our respective businesses. Opening post is an epitome of a quality thread.

    Cheers :)
     
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