Cash is the water that keeps your company alive. And many of entrepreneur will go hit by cash flow problem and the company died a premature death. A lot of them are new to this game of cash flow. Strictly control your cash flow so that you will live longer. One of the biggest mistakes is not getting paid for work done. This is tough. You paid the salaries, rental, expenses, hardware and delivered the product to your customer, and not getting paid for it. You must control your risk here. Focus on getting paid if you have delivered. If you haven’t started the project, make sure the terms are good for your cash flow.
Watch out for customers that request you to deliver your products without paying first. They sold it and have many excuses when you try to collect. Watch out for a customer that asked you to do a proof of concept without any investment from their side. They have nothing to lose if they abandon the project. For all you know, you are the ones that work your heart out, they do not even care. You are vulnerable at the start of your business, and this is the reason why so many of you fall into this trap. Try not to do it. Be careful so that you will survive this stage. This game is bloody. You are playing with real money. Try to negotiate something such that your cash flow will be good. I have faced this issues a few times in my own business and it cost large cash flow problems and many months of wasted man-hours. The large customers just abandon the project as if it is nothing to them.
Everybody has a problem even though he or she is from a big company. So if your product really can help them in making their life easier or more bearable, you have an upper hand. You can negotiate so that the term is good for you. If they are totally not interested to negotiate, then you know that they are probably not your customer, not the current team anyway. Try to make sure you stay alive.
In the accounting module, you can see Cash Flow report in the Accounting Report. It will show you the comparison between inflow and outflows, comparison by months or by year. You would know how you perform in cash flow angle.
Watch out for customers that request you to deliver your products without paying first. They sold it and have many excuses when you try to collect. Watch out for a customer that asked you to do a proof of concept without any investment from their side. They have nothing to lose if they abandon the project. For all you know, you are the ones that work your heart out, they do not even care. You are vulnerable at the start of your business, and this is the reason why so many of you fall into this trap. Try not to do it. Be careful so that you will survive this stage. This game is bloody. You are playing with real money. Try to negotiate something such that your cash flow will be good. I have faced this issues a few times in my own business and it cost large cash flow problems and many months of wasted man-hours. The large customers just abandon the project as if it is nothing to them.
Everybody has a problem even though he or she is from a big company. So if your product really can help them in making their life easier or more bearable, you have an upper hand. You can negotiate so that the term is good for you. If they are totally not interested to negotiate, then you know that they are probably not your customer, not the current team anyway. Try to make sure you stay alive.
In the accounting module, you can see Cash Flow report in the Accounting Report. It will show you the comparison between inflow and outflows, comparison by months or by year. You would know how you perform in cash flow angle.
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