| Open any book on business, or surf the net, and you | | | | analysis, not clients,(unless they cash clients off |
| will find information on goal setting and its importance. | | | | course) with outstanding payments, to your business. |
| I am 100% in agreement with the setting of goals, | | | | Plan your day, with only cash in mind, and embark on |
| but sometimes find fault with the distant or | | | | shrewd methods to extract cash from your debtors. |
| long-term goals. We set goals for the end of the | | | | Opt for a cash sale, rather than a credit one. Insist |
| year, or the month. Effectively, deferring the goal. | | | | on a deposit, for a major job. If you have a credit |
| Long-term goals absolve its creator, of any | | | | card utility machine, go ahead and swipe that card! |
| immediate responsibility. So he/she goes into a | | | | Your deposits, credit card sales settled by bank that |
| "dream-like" state, hoping to accomplish the goal at | | | | day, cash sales and cash collected, constitute your |
| month-end. When the goal is not attained, frustration | | | | daily cash takings for the day. |
| sets in, leading to no further goal setting, and leaves | | | | Follow through by creating a spreadsheet with the |
| the business owner in a rudderless state. | | | | following columnar sections |
| Most businesses set sales targets for a year or | | | | · Checks Collected |
| month. The sales will be recorded in accounting | | | | · Cash Collected |
| books, and substantial amount of those sales could | | | | · Credit Card payments settled |
| be credit sales. So hitting the monthly sales target is | | | | · Direct transfers to the bank |
| excellent, but sales driven by targets would invariably | | | | Another header in bold on your spreadsheet, should |
| be "credit sales", and our old problem rears its ugly | | | | be your daily target. Provide columns for dates, and |
| head again, CASH FLOW! | | | | an important comments section. On the" comments |
| The conventional accounting for sales should be | | | | section", notes are made as to whether the target |
| outsourced. The owner should be more hands-on | | | | was attained or not. Be disciplined. You either hit a |
| with "CASH ACCOUNTING", and set cash collection | | | | daily cash target or not. No "ifs" "nearly" or "buts" |
| goals. | | | | here. |
| Try this cash goal setting strategy. Break down that | | | | SET YOUR ANNUAL CASH TARGET, and divide your |
| huge goal of $ 50 000 sales for the month, into | | | | annual target by twelve, and then by 22 to 23 |
| manageable "bite-sized chunks", of say $2500 PER | | | | working days, and you arrive at your daily cash |
| DAY! (That is 20 working days; a month has about | | | | target. Working pro-actively on a daily target and |
| 22 to 23 working days). It prompts you into action | | | | attaining it everyday, equates to a monthly and |
| immediately. From the moment you wake up, you | | | | annual target accomplished. |
| have to work towards hitting your $2500 target at | | | | If you exceed your daily target by an amount equal |
| end of day. | | | | to your daily target, you cannot relax the following |
| And why not shift the focus away from a sales | | | | day, and regard the excess amount as the next |
| target of $ 2500.00 to a Cash Target of $2500! | | | | day's target. It is another day, with a new target. |
| Sometimes your cash and sales target would | | | | Implement this method, and see your cash inflow go |
| converge (Cash Sales), but as any good accounting | | | | through the roof! On a cautionary note, all cash |
| student will tell you, it's not the same thing. | | | | should be banked, and don't forget to save some of |
| Your cash target now becomes that debtor's age | | | | the cash! |