Receivables are as important as cash! As a business owner, it is imperative that you stay close to the accounts receivables. Receivables are one step away from being cash and cash is always “King” in business.
Whenever I start with a turnaround client, I always contact the top 10 customers (either by annual sales or the receivable balance). I schedule a visit with each to talk to the President of the organization. On each visit, I introduce myself to the owners and thank them for their business. Politely, I also ask if they could start paying their receivables according to the terms of the invoices. This visit always proved to be very successful.
Every two months, I would visit ten more customers. My goal was to build relationships with the customers to get the company’s receivables current. Another significant benefit of the “relationship building customer visits” is to make sure that if there is a problem, I know about it first. When there is a relationship between the owners of each company, usually, I can fix the issue before the company loses the customer to one of our competitors. Relationships with customers keep customers and get our receivables paid on time.
A word of advice…when it comes to business, ALWAYS STAY FOCUSED ON THE RECEIVABLES AND CASH!!!
My name is Robert Curry, and I am an Author, CEO Coach, Keynote Speaker, and Turnaround Specialist. Over the past 20 years, I have worked with more than 70 companies taking their businesses from Loses to Profits.
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I have recently published two books about turnarounds: “From Red to Black – A Business Turnaround” and “The Turnaround.” Both books are true stories about turnarounds of real companies that I have turned around during my career. In both books, I have shared all my Profit Improvement Recommendations (“PIR’s”). PIR’s helped to grow sales, reduce expenses, improve cash flow, and most importantly, strengthen the management teams.
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