By Étienne Garbugli | January 20, 2011 | 1 Comment
You don’t realize it when you start but, running a business has a lot to do with managing cashflow.
All cash not being equal, money in your pocket or money in your bank account is worth a lot more than any money you may be waiting for.
Cashflow is your ability to spend and to invest in projects, infrastructures or new employees; it’s very difficult to grow without it.
This is why suppliers, distributors and sometimes even clients hold off on payment.
But, there’s ways around this. Heinz Ketchup proved it when they agreed to sell for less against faster payments. It helped them; they even became the market leader.
Don’t let other companies control your cashflow. Increase price based on payment ranges to motivate your clients to pay faster (Ali Taieb). Control your cashflow.
Etienne works at the intersection of Technology, Product Design and Marketing. He’s a two-time Startup Founder, a four-time entrepreneur and a UX research expert. Etienne published Lean B2B: Build Products Businesses Want. The Lean B2B methodology helps entrepreneurs around the world build successful businesses.