Abstract
When the economy was in better times, many professional sesrvices firms were doing well despite vague business strategies. Overestimating their business acumen, leaders of some firms would use boastful clichés such as: “We want to focus our business development efforts on attracting ‘smart money.’”
In the good old days, the sheer volume of new business, combined with relatively easy availability of credit for working capital, made “cash flow” a humdrum subject. In some firms, the concept of increasing leverage was a badge of honor for senior leaders, further reducing their worries about slow receivables.
In today’s economy, though, cash flow is now Topic #1 in many firms, and only one thing defines the degree to which money is “smart”: how quickly it arrives after services are rendered.
This article provides tips on how to generate timely cash flow under federal contracts.
