January 8, 2008 – Boston, Mass – Gary W. Patterson, president & CEO of FiscalDoctor™, advises startups and established companies to think strategically about cash flow before a cash crunch becomes a critical problem that could endanger the growth and survival of a company. Heed these tips and watch your company’s cash flow grow.
Send out all accounts receivable statements monthly
Call customers and ask for payment
Speed up customer invoicing
Sell slower moving inventory at a discount
Review inventory levels by days sales and adjust outstanding and future orders
Sell and/or lease back assets
Increase the company’s line of credit
Review intellectual property for royalty opportunities
Review staffing levels and staff on a green-field basis
Identify products that are loss leaders
Raise prices where appropriate
Find ways to reduce scrap
Ask employees for suggestions
Slow vendor payments temporarily
Do more with less
Review expenses on a line-by-line basis
Assign customer write-offs to a collection agency
Review services you provide free of charge and consider charging for them
Review why legal and professional bills are so high
Obtain external help for an assessment
About Gary Patterson
Gary W. Patterson, FiscalDoctor™ (www.FiscalDoctor.com) has been a consultant for more than 200 companies spanning high tech and service industries. His clients include startups, Inc 500, and Fortune 500 companies worldwide. Patterson is a contributing expert to a forthcoming book by Eric J. Leech on making strategic use of Other People’s Money (OPM) to build corporate value. For more information, visit www.FiscalDoctor.com, or call Patterson at 781-237-3617.
© 2007-2008 Gary W. Patterson. All rights reserved.