Business

Is It Possible To Double Your Cashflow In A Month? You Bet It Is!

When you first start out in business, you soon learn about the importance of cash flow. While you may have thought, in your naivety, before you started your business that what mattered in business was profit, you soon discovered that this wasn’t always the case. Sure, you might have been in the black for the year as a whole. But there were times during that first year when you dipped precariously close to the red and ran out of cash. As a result, you risked not being able to pay your suppliers, your colleagues and even yourself.

Cash flow, therefore, became your new focus. It was the thing that you realized that you had to focus on if you were going to avoid another disaster. Fortunately, there’s a lot you can do to improve the rate at which money flows into your business. Let’s take a look.

Reduce Your “Days Sales Outstanding”

Flickr

Days sales outstanding” or DSO is a technical piece of jargon used all the time in the business world. It’s just shorthand for the amount of time you’re waiting for your customers to pay you. For many small businesses, DSO is large, meaning that at points during the month, they start running out of cash.

Small businesses often feel intimidated by their larger clients and are sometimes hesitant to demand payment quickly. But when a service has been delivered as specified, it’s time for the client to pay up. Take a look at your current payment arrangements with your customers. How long do they have to pay right now? If you currently offer a three-week window for payment to be made, try reducing this to two weeks for all new clients. Even if customers don’t stick to the two-week payment schedule, cutting down the window often still means that businesses get paid faster.

Make Immediate Payment Possible

When clients don’t pay on time, it’s not because they’re trying to torture you or that they don’t have any money. It’s usually because they are lazy and can’t be bothered to go through the hassle of setting up a payment. After all, it takes a long time. This is why it’s so important for small businesses to make use of merchant services. Merchant services allow them to accept credit card payments in person, online or through their digital invoices. Some companies, like Wave Accounting, have found that including an immediate payment option speeds up client payments by an average of three days.

Do A Credit Check

Flickr

Occasionally you’ll get a client who doesn’t want to pay up front in cash. Instead, they want to pay you in a series of installments. When a client asks to do this, it’s a good idea to have a credit check done on them by a third party credit check agency. You want to find out whether the client actually has the means to pay you, in the long run; otherwise, you risk not getting paid for the services rendered. When payments are late, or not paid at all, your cash flow will suffer.

Read More...

How To

Top Tips to Select a Tech Project Manager

When you start a tech project of any kind, it essential to have a project manager. A project manager is that person who’s going to be the point person, ensure everything moves smoothly, and serve as a centralized hub of communication in many ways. Project managers facilitate the process that goes into the development of anything related to technology, so how do you choose this person?

The list below represents some key criteria to consider as you select a PM for your next tech project.

Match Skills Appropriately

One of the first mistakes made when selection a technology project manager is the tendency to want to hire the person with the most skills, as opposed to someone with the right skills. Even if a candidate has broad experience and expertise, that doesn’t necessarily mean they’re going to be the right fit. When matching skills, try to find the person that has what reflects most closely your project requirements. Don’t become so blinded by an incredible resume that you forget what’s critical to the core of your project.

Hone in On Soft Skills

When you’re looking for a technology project manager, there can be a tendency only to look at their skills or their training and education. Unfortunately, this is detrimental because there is a lot more that goes into managing a project than simply have the technical expertise. Think about soft skills. Some of the important characteristics to look for in a project manager include strong communication, empathy, and organization. You also want to look for someone who seems to have a good ability to look at the long-term picture, see where obstacles may exist, and who is willing to be flexible enough to adequately address challenges that arise, even if they’re unexpected.

Approach

When it comes to technology projects, there are a lot of different approaches that can be taken. One of the most popular is the agile methodology, but there are specific distinctions even within this broader category. Consider how potential project management candidates approach their work, and what training or certifications they might have. One of the most valuable certifications when it comes to technology project management is DevOps training, which refers to a framework for integration communication, collaboration, and automation to improve workflow between developers and IT professionals.

Consider Other Team Members

A project manager is going to be inherently intertwined with the members of his or her team throughout a tech project, so when you’re choosing someone, make sure that you’re also considering these people who will be working under the manager. Project managers need to be able not just to work with the people that report to them, but also effectively lead them and inspire them to stay on time and budget with the project.

The person you select to manage your technology project is often going to be the link between your organization and the final product. This person is going to determine how smoothly the project moves along, how well it stays on course time-wise, and whether or not it adheres to budgetary restrictions.

Read More...