Tip 137: Improving Cash Flow

Cash flow in our business did not used to be a problem—it was always one of the major perks of producing a trade show. Now some shows are having problems keeping incoming revenue ahead of outgoing expenses. That is because many exhibitors are taking advantage of the market downturn—and holding back on making those advance payments.

To keep your cash flow positive, the overall goal is to speed up collections and slow down payments. Here are some tips:

P.S. If you offer a discount for early booth payment, word it this way: "Amount due $2800. Deduct $200 if paid by September 1." Do not say, "$2600 if paid by September 1." In the latter case, the exhibitor will fixate on "$2600" and that is all you will get even if the check arrives in January.