1. A Cashflow & Profit Improvement Meeting - a 90-minute meeting to calculate the client's Cash Conversion Cycle, demonstrate 1-2 improvement strategies using The Gap's calculator, and identify actions the client should take to implement these strategies and achieve their improvement targets.
   
2. Cashflow Management Coaching - regular accountability coaching sessions to ensure clients execute their cashflow management strategies and achieve their goals. Frequency depends on each client's particular needs - monthly, bi-monthly, or quarterly options are recommended.
   

Note

The default frequency for Cashflow Management Coaching is monthly. If delivering bi-monthly or quarterly, update the first text box in the document and the rest will automatically update to match. Consider using the Versions feature to save a version with your most commonly used Cashflow Management Coaching frequency.

To access the Cashflow Management bridge, go to Navigation panel >  Bridges > Cashflow Management bridge.

Understanding the Cashflow Management process

Note

Ensure you review the Process Guide prior to using the content in the bridge.

Marketing the Cashflow Management service

1. Discussing the value of a Cashflow & Profit Improvement Meeting or Cashflow Management Coaching when a client requests a Cashflow Forecast, explaining to the client that a Cashflow Forecast typically acts as a bandaid and they'd benefit from implementing strategies to address the root of the cashflow issues.
   
2. Discussing the need for cashflow improvement as part of a CCR, PAM, Cashflow Forecast Meeting or Annual Accounts Review Meeting.
   
3. Sending out relevant educational marketing content to your database to subtly position the value of Cashflow Management.
   
1. Go to Navigation panel >  Marketing > The Gap + BOMA  > The Gap + BOMA Content Library Catalogue to check out our education marketing content ready for you to send via BOMA
   
4. Hosting a Cashflow Management Seminar.
   
5. Hosting one of our other Gap Webinars or Seminars to generate interest in your Cashflow Management service.
   
1. Check out our Bolstering your Balance Sheet webinar, navigate to Navigation panel >  Bridges > Gap Webinars and Seminars > Bolstering your Balance Sheet
   
   

The Cashflow Management proposals

There are five proposals in the Cashflow Management bridge , offering either a Cashflow Improvement Meeting, Cashflow Management Coaching with or without a Forecast, or the Business Advisory Trifecta of Business Planning, Cashflow Forecast and Ongoing Coaching (which can be on a monthly, bi-monthly or quarterly basis).

1. Consider the client's unique situation and use the checkboxes to select the objectives, measures of success and value to the client; add bespoke objectives, measures of success and points of value to reflect the client's individual needs
   
2. If your client does not accept within seven days, call them to follow up
   

For more information, see our Using proposals article.

Tip

Carefully read through the objectives, measures of success and values to better understand the types of problems this service will help solve for your clients.

Delivering the Cashflow Management services

Service 1: The Cashflow Profit Improvement Meeting

Client Outcomes

By attending a Cashflow & Profit Improvement Meeting, clients will:

1. Understand the difference between cashflow and profit
   
2. Discover the key cashflow & profit drivers in their business
   
3. Identify ways to improve their Debtor Fays, Inventory Days, and Payable Days
   
4. Understand the impact small changes can have on their profit
   
5. Identify actions they can take to strengthen their cashflow and profit
   

The Cashflow & Profit Improvement Meeting

A 90-minute meeting to calculate the client's current Cash Conversion Cycle, identify realistic improvement targets and demonstrate the impact small improvements will have on their cash and profit. You'll record client actions in the Meeting Minutes and position the value of ongoing accountability coaching.

Service 2: Cashflow Management Coaching

Client Outcomes

By undertaking Cashflow Management Coaching, clients will:

1. Learn how to monitor their actual cashflow against forecast
   
2. Improve their business processes to maximise cashflow, profit and business value
   
3. Be held accountable to achieve their cashflow improvement goals
   
4. Understand their cash and liquidity to enable better decision making
   
5. Predict and plan for large cash outflows
   

Ongoing Cashflow Management Coaching Sessions

Monthly, bi-monthly, or quarterly 90-minute coaching sessions, dependent on the client's needs. You'll focus on each of the seven key causes of poor cashflow, sending specific pre-work for each topic and identifying improvement strategies for each cause. During each session, you'll review the client's progress toward their goals and reset their improvement goals and actions.

Attention

It's essential that the client has developed a Cashflow Forecast prior to undertaking Cashflow Management Coaching.

Prior to each coaching session, you'll provide all attendees with pre-work to complete, ensuring that any issues that need to be discussed are identified and you can prepare accordingly.

Important info

We recommend enforcing a 'no pre-work, no meeting' policy. Politely discuss the benefit of pre-work and reschedule the meeting so it does not become one of discovery.

Click here for more information about common content found in the Gap bridges and how they relate to each step in the Cashflow Management process. See the Cashflow Management Process Guide for detailed information about the Cashflow Management content.

Key content in Delivery folder includes:

1. Cashflow Management Preparation Checklist: to assist the administrator and facilitator to prepare for the meeting, whether online or face to face.
   
2. Cashflow & Profit Improvement Calculator: a Cash Conversion Cycle and Profit Improvement Calculator to use during the Cashflow & Profit Improvement Meeting to demonstrate how small changes can have a big impact on cashflow and profit.
   
3. Cashflow Management Resources: key cashflow resources to review with the client during the Cashflow & Profit Improvement Meeting and send as a PDF attached to the Meeting Minutes, including the Business 101 Cycle, Cash Conversion Cycle, The Seven Key Causes of Poor Cashflow and the Seven Ways to Grow Your Business.
   
4. Accounts Receivable Call Scripts: provide these to clients to help them negotiate faster payment with customers who aren't paying in accordance with their payment terms.
   
5. Additional Pre-work: seven additional pre-work forms relating to each of the seven key causes of poor cashflow, to be sent prior to a coaching session on that topic.
   
6. Credit Management Guide: a customisable guide to managing accounts receivable.

Important info

We have thorough pre-work to drill deep into: Accounts Receivable, Accounts Payable, Inventory Processes, Debt and Capital Processes, Expense Reduction, Gross Profit Margin, and Sales Processes.

Note

The  Cashflow Management bridge does not include a forecasting tool. The bridge is designed to provide the wrap-around service to sell the forecast and ongoing coaching. Most forecasting tools do not help you to monetise this service. We recommend using a forecasting tool such as Spotlight Reporting or Fathom.