This may be abit of a dry posting but for start-up entrepreneurs it will be one of your most important lessons. And I won't fluff it with an intro...just hard core info that will be critical to your success!
Here it is..
Lesson #1: Cash is King! Period! Make sure you have some or at least access to some. And don't wait until you need it to get access to it.
Lesson #2: Get deposits! For my businesses...if they are not retail...I always get deposits on any business booked with me. Why? It at least covers my costs while I am waiting for my $$ and it sure helps to collect the rest of the money if they paid the deposit with a credit card...you then have that info to charge them for the rest of the balance owing if they are not paying within the rules of your contract. And this is where some people will say..."you can't do that without their permission!" My answer...If they owe me...Watch me!
Lesson #3. Accounts receivables are not cash...they are only an asset that can look good on your balance sheet but they bring no value to your cash reserves.
Hard core advice but truly it needs to be taken....
Here's to your success!
- Rivers Corbett
- Rivers Corbett, MBA is an award winning entrepreneur, speaker, and author of "13 Fears of Entrepreneurs" He has received numerous business honors including Entrepreneur of the Year, Canada's Hottest Start-ups List and Canada's Fastest Growing Companies list through Profit magazine and most recently recognized as one of Canada's 10 Mentor RockStars.. Rivers is presently a member of Startup Canada's National Advisory Council, founding entrepreneur of StartUP Fredericton & the "Entrepreneur in Residence" at the University of New Brunswick. His real joy and expertise is being a StartUP Advisor and "zagging while everyone else zigs"...like his two newest businesses ventures the Relish Gourmet Burgers restaurant chain and TheRockStar StartUP for StartUP entrepreneurs. Oh... he is also the leader of a team of over 25 chefs through his other company The Chef Group. Not bad for a guy who hates to cook. Always looking for a new idea to help businesses' succeed...this is his newest marketing discovery for StartUPs The Lyoness Advantage. "Rivers is a 21st century entrepreneur, he's the one to watch" - Jim Gilbert: Canada's Huggable Car Dealer!