Cash flow in our business did not used to be a problem—it was always one of the major perks of running 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 up 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:
Continue selling the benefits of the show till you get the first payment (and a signed contract).
Plus see page 40 in the book for specific tips on getting all payments on time.
Really push early bird conference registrations—such as a 50% discount four months out.
Negotiate better payment terms with the venue—such as 10% 12 months out and then 30% eight months out, another 30% four months out and the final 30% 30 days out.