Tony's Tip No. 12 - Keep in Touch

Tony’s Tip No. 12 – Keep in Touch

This is one of a series of no more than 300 word tips on cash flow

"Keep in touch” are the three most important words in this credit crunch

If we keep in touch with our customers, our suppliers and our bank we will benefit. In our personal lives it is just as important to keep in touch with those we need to pay.

Seldom does anyone, without any prompting, call you to say they cannot pay you? But if you phone a creditor saying you cannot pay on time, the reply is usually “Thank you for letting me know”, and you will probably get more time.

Why? Because you are “Keeping in touch”, they know who you are and they know that in the end you will pay, even though you are actually using their money.

This is what really successful companies do, they make friends of their suppliers. Charles Dunstone, the billionaire who started Carphone Warehouse, says: “You have to be a good partner to your supplier. Suppliers are the cheapest working capital you will ever get” and he is now a billionaire!

The reason it works is that all businesses need cash and if your payment is late and you do not talk to them, they will assume your cash will not come in, and that is when they may get nasty and your relationship with them is hurt.

Tony Dalton

© Tony Dalton
author of Cash Management
published by A & C Black ISBN 978-1-4081-3984-4
Buy it here!