Everybody loves Santa – whether you’re a child waiting to hear sleigh bells on Christmas Eve, or a parent relishing the threat of his ‘naughty list’ in the run-up to Christmas.
But what cash flow lessons can we learn from the big man himself? His waistline is a clear suggestion of success – so is he on our nice list, or our naughty list?
1. Background Checks
We all know Santa runs background checks on his customers, and even keeps a separate list of those he won’t be giving presents to this year.
It’s a great example of cash flow best practice, and one we should all be certain to emulate in 2016 and beyond, as checking into your customers’ credit records can help to avoid bad debts, and provide peace of mind at the same time.
You have to admit, Santa has a pretty strong brand image and a hugely positive customer reputation, and a lot of that is down to his friendliness and approachability.
When you hire our credit control team, we will work under your brand name, and make sure to always portray you in a positive light – with your own direct telephone number so your debtors can contact us when they need to.
Healthy cash flow is about keeping steady income against your regular outgoings – and we have to be critical of Santa on this one.
Working all year round to produce so many toys, and then leaving it until the very last minute to try and deliver them all on a public holiday, is a little careless; we would urge our own clients to keep on top of their admin on a more regular basis, whether that means sending out invoices, reminders, or debt recovery letters of action.
We’re not sure what system Santa uses to trace his customers, but it’s impressive, as he consistently finds you wherever you are in the world.
Our own tracing services can help you to track down runaway debtors to get back any money they owe you, and you won’t need a magic sleigh to get to them, just a strongly worded letter and a possible court summons.
Ah. Here is where the jolly fat man falls down – after all that brandy on Christmas Eve, and with a slew of bank holidays immediately afterwards, it’s perhaps no surprise that he forgets to invoice anyone for goods received.
However, there’s no excuse for this – your gross income and net profit are crucial to maintaining healthy cash flow, so stay on top of your invoicing, even if you’re nursing a festive hangover of your own.
Santa sticks to many of the examples of cash flow best practice, but he lets himself down when it comes to invoicing.
However, we’re not going to be held responsible for the world’s children receiving an invoice for every gift they get in future years – so Santa can stay on our nice list after all!