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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!

10 – Think Cash, Think Expenses.

Tony’s Tip 10

Think Cash, Think Expenses.

I know this is obvious, but is it really?

As a mentor I have been into many businesses and I still haven’t been into a business where I haven’t been able to find savings. This is because we spend a lot of time thinking about how we can build our business, we think a lot about our products, and think we think about our expenses, but we are too close to our business.

This allows your expenses to get this cheeky habit of just growing like a cancer, in fact your expenses can appear to grow all on their own, and the problem is that we always ...

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9 – Why are so many would be Entrepreneurs such bad salesmen?

Tony’s Tip 9

Why are so many would be Entrepreneurs such bad salesmen?

Why when a potential entrepreneur comes up with an idea it is impossible for him or her to explain it in such a way that a future investor can understand?

I ask these questions because I have recently been working with Coventry University helping several small businesses the UK and across Europe. Every one of these people are enthusiastic about their product, but other than their enthusiasm they don’t seem to be able to sell their ideas or even explain them to me.

Which is why I ask them to give me their idea in just 50 words, then …

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8 – Keep your customers close, but your suppliers closer

Tony’s Tip 8

Keep your customers close, but your suppliers Closer

Keep in touch” are the three most important words of advice any business can get.

We have keep in touch with our customers, our suppliers and our bank. In our business lives it is more important to keep in touch with those we need to pay.

Seldom does anyone, without any prompting, ring up to say they can’t pay?  However, if you do phone up to say you can’t pay, the reply is usually “Thank you for letting me know”, and you 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 at that point you are actually using their money.

This is what really successful companies do, they make friends of their suppliers and use their money. Charles Dunstone, who started Carphone Warehouse, says: ...

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7 – The Seven Pillars of Success

Tony’s Tip 7

THE SEVEN PILLARS OF SUCCESS

As your business grows you need to keep in mind the Seven Pillars of Success.

The Seven Pillars of Success are a check list for you to keep in mind and to regularly go through:

Ideas –             the key concepts at the heart of your plan.

  • Do you

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6 – Talk to people

Tony’s Tip 6

Talk to people

It is amazing what happens you talk to those outside your business. They see it totally differently to you.

I recently heard a story about Land Rover when they were launching the Land Rover Discovery in 1989.

The marketing people at Land Rover were really excited about...

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5 – Taking on staff

Tony’s Tip 5

Taking on staff

So you need to take on staff?

Do you really need these people, I ask this as you have to remember: “it is very easy to take staff on and very painful to have to lose them“.

I have never been able to lose a staff member, either due to the business shrinking or due the misconduct, without having several sleepless nights.

The moment you take someone on you have a responsibility to them, you have to meet their wages before anything else, and you need ...

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4 – Stock – where do you get it from?

Tony’s Tip 4

Stock – where do you get it from?

Stock is the product you are going to sell.

Sometimes you can create it yourself, or other times you need to buy it in.

If you make it yourself, you need to write down exactly how you produce it, so that as your company expands you can get others in to make it for you, as your business will never grow to any size on your efforts along.

There is a much more important reason why you write the production method down and that is once on paper you...

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3 – Why do you have to give 30 days credit?

Tony’s Tip 3

Why do you have to give 30 days credit?

When I ask the question “why do you give 30 days credit?” Everybody says it’s the way their market works but it shouldn’t be.  Think about it?

If you have a monthly turnover of £20,000 and your customers pays you in 45 days you need £30,000 in cash just to keep going. Get your them to pay in 30 days you need £10,000 less. But you still need £20,000. Get them to pay in advance, you can use their money!

 This is Think Cash!

 So I have to ask again, why set your payment terms as 30 days?

If you buy off the internet you ...

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2 – You write yourself a business plan

Tony’s Tip 2

 

You write YOURSELF a business plan

The YOURSELF is in capitals because this is not for anyone else but you.  It is for the person you look at each morning in the mirror, that is the person you have to convince that you have it right.

This business plan is not a long multi page one, it is a very simple one, and you only write 50 words into each heading.

The headings are:

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