FOR IMMEDIATE RELEASE
Cashflow in a Crisis – Top 4 Survival Tips
10X CEO Nic Clark shares his top cashflow management strategies proven to work for
Australian businesses.
Even profitable businesses can go broke if they do not effectively manage their cashflow
during the recession, according to 10X CEO and business development expert, Nic Clark. The
key to surviving the recession, Nic says, is strategic cashflow management that takes into
account the new economic conditions and adjusts cashflow activities accordingly.
Cashflow represents one of the major concerns of Australian business owners, with 92%
frequently experiencing stress as a result of it, and a significant amount having to source
additional funding, reduce their operations, and even take pay cuts to accommodate
it
within their business. According to Nic, cashflow problems have been further exacerbated
by the recession, which has resulted in fewer customers and leads for businesses, reduced
consumer spending, and increased operating costs. “Cashflow mismanagement will break a
business, regardless of how big or small it is,” says Nic. “Right now, effective cashflow
management is more critical than ever for your business’s survival.”
Nic Clark has personally seen how easy it is for business owners to transform the cash flow
situation in their business. The 10X network of accounting firms across Australia and New
Zealand have been helping their clients implement effective cashflow management
strategies with dramatic results. Nic says that every business owner can benefit from the
same principles taught by leading accountants.
Nic Clark shares his Top 4 cashflow management strategies:
1.
The first step in strategic cashflow management is setting goal-oriented budgets -
and proactively managing them. “Profit and loss budgets are obviously important
in providing you with direction on where to spend, and where to save,” says Nic.
““However, it is cash flow budgets will break down income and expenditure and
really guide how you manage your cash requirements and shortfalls.”
2.
Next, businesses need to focus on increasing sales and income – a feat that, even
during a recession, is possible. “It’s all about being proactive, and really providing
benefit to your customers. Business owners need to identify creative ways to
increase retention rate, generate leads, and increase conversion.”
3.
Business owners should avoid easy tactics like discounting, which Nic says can be
dangerous to business profitability. “Even a 10% discount can result in your
business having to increase sales by 100% to achieve the same gross profit pre-
discount,” says Nic.
4.
Reducing the cashflow cycle by implementing a debtors collection system and
credit policy, collecting debtors faster, selling stock more quickly, and negotiating
longer credit terms with creditors will also benefit a business’s cashflow. “Putting
in place systems like a debtors collection system, credit policy, stock control
system and purchasing system will encourage inflows and put less pressure on
the immediacy of outflows, freeing up more cash for the business,” says Nic.
Nic Clark shares a real-life example of a husband and wife team in Hunter Valley, who were
facing the harsh reality that their business cashflow was unable to pay weekly fixed
expenses and that debtors finance was restricted due to excess over 90-days. Together with
their 10X Coach, they developed a process to handle debtors with 3 letters. They also
received coaching through various role-plays on how to handle difficult telephone calls.
After implementing this strategy, the couple were able to turn around $28,000 in the first
week, debtors over 90 days reduced and after 2 months debtor finance released an extra
$20,000.
As Nic stresses:
“Cashflow represents the lifeline of all businesses, and with the right
resources and support, Australian businesses can ensure that their cashflow is effectively
managed for survival through the current crisis.”
10X is committed to supporting the ongoing success of local business owners, and Nic Clark
is making a series of free teleseminars available to the business community via the 10X
network. The first teleseminar scheduled is titled ‘Cashflow in a Crisis’, featuring 10X
accountant and cashflow expert, Judy Reynolds, interviewed by business improvement
specialist, Dean Marinac. Australian business owners can register for free via the website, at
cashflow questions to be answered by 10X experts during the teleseminar.
About Nic Clark
Nic Clark is the CEO of 10X Limited, a public company specialising in the setup of business
development divisions within accounting firms across Australia and New Zealand. Nic has
had 16 years hands on experience advising hundreds of small-to-medium sized businesses
throughout Australia, New Zealand, the USA, Canada and the UK. He has assisted in the
completion of over 890 comprehensive business plans covering a broad range of business
areas such as Management, Marketing, Operations, Human Resources and Finance.
As a previous Director of Action International, the current market leader in business service
franchising and the founder of 10X Limited, Nic is regarded as THE expert on white collar,
business service franchise development in the Asia Pacific region. He is also the creator of
the 10XPERFORMANCE PLANNER business planning and business performance system, and
10XEXPANDER business consulting and profitability tools.
For further information please contact: Monique Van Dijk at monique.vandijk@10x.com.au
* Statistic taken from NAB survey, Nov 2008
NEWS 
