Chris Hooper - Who Broke My Cashflow

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Who Broke my Cashflow?

Chris Hooper


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Chris is one of the most driven people you'll ever meet - he's hungry forsuccess, knows what it takes, and has the determination to make it happen.I count Chris among my most trusted sources of advice, particularly for his

long-term perspective and focus on succeeding not just in business, but lifeitself. I look forward to watching as Chris makes each and every one of hisinevitable future successes look easy.

Matt Mitchell - Technical Consultant

Chris is one of the most inspirational and energetic people I've come acrosswhilst working at AIESEC. His vision and drive for Cirillo Hooper aswell as his zest for life is what makes him someone to look up to as a young,successful professional, and anyone that has had the privilege of working withhim I'm sure will agree!

Jemma SchillingCoFounder of Rogue & Rascal Pty Ltd

Chris has helped us through some of the most rough times! Especially whenyou are running a startup business, having someone like Chris and his teamis just invaluable. He has on countless occasions came out to our office andmentored us through multiple obstacles. Chris is one of the most passionateaccountants that I have ever met! Trust me he is one of a kind!

Vinh Giang - CoFounder of Encyclopedia of Magic


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Chris's passion for entrepreneurship and venture capital is a driving forcebehind the success of The Startup Club. He is a focused, logical team playerthat is driven to achieve the highest levels of success. I choose my colleagues

very carefully. Chris more than fits the bill. Feel free to contact me for furtherdetails about my working relationship with Chris.

Geoff Kwitko - CoFounder ShareScene

From the moment I first met Chris Hooper, I knew that he loves what he

does and takes his business seriously. As a fellow young entrepreneur, Iunderstand how tough it can be to really establish yourself and your presencein business - in fact, for all entrepreneurs - let alone manage the financialsuccess of that business. I have no doubt Chris is exceptional at this, and Iwould recommend him to any business looking for high quality, hands-onfinancial management.

Emily Gowor - Best Selling Author


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Find out what causes cashflow problems and how to fix them.

Chris Hooper


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2012 Chris HooperPublished by Cirillo Hooper & Company

C/- Cirillo Hooper & Company1402/147 Pirie StreetADELAIDE SA 5000www.cirillohooper.com.au

ALL RIGHTS RESERVED. This book contains material protected underInternational and Federal Copyright Laws and Treaties. Any unauthorized reprint oruse of this material is prohibited. No part of this book may be reproduced ortransmitted in any form or by any means, electronic or mechanical, includingphotocopying, recording, or by any information storage and retrieval system withoutexpress written permission from the author / publisher.

While the author and publisher have made every effort to ensure that the informationand instructions in this book are accurate and safe, they cannot accept liability forinjury, loss or damage, whether direct or consequential arising from use of this book.

This book is intended to provide general information only and has been preparedwithout taking into account any particular person's objectives, financial situation orneeds. You should, before acting on this information, consider the appropriateness ofthis information having regard to your personal objectives, financial situation or needs.

It is recommended that you obtain tax and financial advice from a qualifiedprofessional before making any taxation, investment or insurance decision.


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Dedicated to Katie


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CONTENTS

AUTHORS PREFACE................................................................................. 1

ACKNOWLEDGMENTS .............................................................................. 2

PART 1: WHO IS CHRIS HOOPER? ............................................................. 5

PART 2: DOES THIS SOUND LIKE YOUR BUSINESS? ................................... 7

PART 3: YOURE NOT ALONE! ................................................................. 11

PART 4: WHAT YOU WERENT TOLD ABOUT CASHFLOW ........................ 15

PART 5: THE ANSWER! ........................................................................... 21

PART 6: IMPLEMENT NOW! ................................................................. 27

ABOUT THE AUTHOR ............................................................................. 31


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Authors Preface

Cashflow: It is a killer of small business and it is the number oneissue on every small business owners mind.

I get asked about cashflow by every single business owner thatcomes through my door, and when I get clients to prioritiseissues in the business, it will consistently come in at number one.Rather than answering that question a hundred times over a year,

I decided to write this book, so it may help my clients, futureclients and business owners around the world.

Before I tell you what this book is, Ill tell you what it is not.

Its not a best seller, so dont expect one

Its not going to turn around your business, but it mayhelp you sleep at night

Its not exciting, its accounting but it is criticallyimportant to your business

If youre having cashflow problems, suffice to say I understandexactly what youre going through. You are not the first businessowner to stress about cash and yourecertainly not the last.

Hopefully this book helps remedy the situation.

Enjoy.


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Acknowledgments

My wife

To my wife who always believed in me, even when we were 21,broke and just starting out. You have made your fair share ofsacrifices to help get me where I am today. Thank you foreverything you have done to make me the man I am today.

My family

As a child my mother taught me about money and my fathertaught me about business. I am quite fortunate to have grown upin a family where such topics were commonplace around thedinner table.

My business partner

Not everyone gets to say that they are in business with their bestfriend (and live to tell the story). I am amongst those fortunatefew who had a friend to support me in every single whacky ideathis entrepreneur ever had. Thank you for your investment oftime, capital and faith.

My team

To everyone at Cirillo Hooper & Company, thank you for yoursupport and your faith in me. Many people said I was crazy forstarting this business, while you were the ones that alwaysbelieved in the firms vision and kept fighting.


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My clients and readers

To the people that read my work and listen to my advice. You

are the reason why I put fingers to keys on a Sunday morningwhen I could be sleeping. Rather than keeping it all locked in myhead, your interest is what encourages me to share my ideas withthe world.


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Part 1: Who is Chris Hooper?

Good question, who am I? Put simply I am an accountant bytrade, entrepreneur by nature, that helps small businesses andstartups use big business ideas to maximize their financial results.

I get asked why I became an accountant a fair bit, if youve metme or heard me speaking, youd understand why that questioncomes up a lot! My response is that, I have always been curious

about all things business and how it all works.

To that end I found accounting to be a critical component of myunderstanding business better. In fact when I was a teenager, theonly reason I choose accounting was so that I could betterunderstand money in the context of whatever business I wasgoing to own in the future. It just so happened that I ended upstarting an accounting business (amongst other things) after

university.

Now I get to work with business owners every single day. I helpthem build their businesses and I learn more every day. Thisbook is a culmination of all my research in the cashflow area.

My work now takes me across the country consulting withclients, making media appearances and public speaking. All ofwhich is in an effort to help educate business owners on gettingbetter performance out of their business.


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Report Card

Chris HooperDipBus DipMan BComm GradDipCA AIMM

Education

Diploma of Management from Australian Institute ofManagement

Graduate Diploma in Chartered Accountancy from theInstitute of Chartered Accountants Australia (2012)

Registered Australian Taxation Agent (2011) Bachelor of Commerce with a major in Accounting and a

minor in Applied Finance from the University of SouthAustralia (2010)

Diploma of Business from South Australian Institute ofBusiness & Technology (2007)

Career

CEO at Accodex Pty Ltd (2014Present)

Executive at Startup Adelaide Inc (2013Present)

Partner at Cirillo Hooper & Company (2011 to 2014)

Accounting Tutor at Flinders University (2012)

Treasurer at SAUCNA Inc (20082012)

Finance Analyst at Downer Group Ltd (20102012)

Accountant at Brentnalls (20062010)

Co Founder at Startup Club (20082010)

Director at Hooper Govan Capital (20082009)

Want more? Check out my LinkedIn Profile

http://au.linkedin.com/in/christopherhooper
http://au.linkedin.com/in/christopherhooperhttp://au.linkedin.com/in/christopherhooperhttp://au.linkedin.com/in/christopherhooper


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Part 2: Does this sound like yourbusiness?

I am constantly having to use the overdraftor credit card to pay bills

This is easiest symptom to diagnose cashflow problems.Sometimes the use of short term debt facilities are justified tosmooth out cash flow fluctuations, but they should not be seen

as permanent solution.

Using short-term debt to fix cashflow problems is like takingparacetamol on a fever, it alleviates the symptom, but you havenot cured the source of the fever: If symptoms persist pleaseconsult your accountant.

I am worried I wont be able to make payrollnext week

Nothing keeps a business owner up at night like the prospect ofmissing payroll. I think its a mix of the fear of a riot at work andalso the weight of the responsibility that comes from you beingthe one that pays your staffs mortgage, school fees andgroceries.

There should be more to life than staying up at night worryingabout making payroll. What concerns me is, that as the businessowner youre up at night worrying about paying your staff; who isup at night worrying about paying you?


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My customers are jerks and dont pay theirbills

Its not that your customers are jerks; chances are they are havingthe same problems that youre having. Dont forget that the onlyreason that youre in business is because they chose buy fromyou. Granted, if theyre not paying, you probably wont be inbusiness much longer. You still shouldnt resent your customers.

Once again, sending out the debt collectors is merely a reaction

to a symptom of poor debtor control. You need to identify andaddress the root cause of your debtor issues. I am certain youllfind some ideas later on in this book.

I am getting worried about the angry lettersand calls I am getting from the suppliers

I dont think any of us want to pay our bills late, but once again,sometimes were compelled to do so by our own cashflow issues.With that comes the onslaught of angry letters and phone callsfrom suppliers and creditors.

Our customers pay us late, so we pay our suppliers late, so theypay their suppliers late and so on. Its a vicious circle, but itdoesnt have to be this way.

I dread my tax bill coming in

Dont we all? Each quarter we have to fork out thousands ofdollars to the tax man, not to mention the big bill that comesevery year with the income tax.


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Getting in debt with the tax office is not ideal. Unlike your othercreditors they have the full force of the federal government and abillion dollar budget behind them.

At worst you have no plan to manage these bills that cansometimes equate to 40% of your takings. Some of the smarterbusiness owners I have met have a separate bank account forpaying their taxes, but this can often be raided in times ofcashflow crisis.

We are selling stock faster than we can buy it

Youd think this was a good thing, right? It means the business isgrowing and making sales. Growth can be a big killer ofcashflow, and heres why:

You need stock to sell before you can start making money, andyou need to buy more stock the faster you go. This can become a

bit of a juggle as youre relying on customers to pay on time soyou can purchase more stock to make more sales.

Conversely, having too much stock can just as easily blow up inyour face, as stock sitting around collecting dust is not as usefulas cash sitting in a bank collecting interest. Suffice to say,inventory management is key to cashflow management.


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Part 3: Youre not alone!

Our storyAs many readers will know, I am a partner at an accounting firmcalled Cirillo Hooper & Company. This was, and still is a veryfast growing firm. Markus and I started the firm in our midtwenties with a very small contingent of clients worth about$20,000 per year and we had about $20,000 cash in the firm. Thelogical thing would have been to wait a few years before we had

saved some more money, but I was adamant we could bootstrapit.

I was right; we ran a very lean operation and had some bigconsulting gigs that paid all our bills and then some. Beingaccountants, we had our fingers on the pulse of our ownfinancial affairs. We were profitable, thats all we cared about.

Preoccupied with our own success, we were oblivious to thecashflow gremlin that attacks fast growing companies. The fact iswe were waiting for money to come in but we still had to pay formore equipment, office fitouts, unforeseen expenses and rapidlyhire staff to fill temporary workflow shortages, and we almost ranout of cash.

As a result, our firm, revisited the cashflow situation and foundthat conventional accounting wisdom does not give you thewhole picture. We had to reinvent our cashflow managementstrategy, and this is what this book is about.

The markets story

Our story isnt unique and neither is yours. It is the number oneissue our clients have when they come in to our office. It looks


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like it is the number one issue on most business owners mindstoo.

Business failure numbers vary depending on who you talk to andhow they quantify failure. The most authoritative study I foundon small business startups and failures in Australia was initiatedin 1973 by Professor Alan Williams and is still being kept up todate. In 2000 it was cited in a report by Rolffe Peacock thatexplains that 74% of small businesses fail within the first fiveyears.

Dunn & Bradstreet remarked in 2011 that 80% of businessfailures can be traced backed to cashflow rather than salespressure. This means that the business owner has no difficulty infinding customers, but getting paid is a whole other situation.

In fact, if you go up to any business owner and ask, Howscashflow? I would be surprised if anyone had anything positiveto say, and I suspect a few would probably just start crying.

My Dads story

At our firms first anniversary barbeque, I was talking to myfather who was a small business owner back in the eighties andnineties. I asked him what he did to manage his cashflow at hisbusinesses, and he told me, I kept a lazy eighty in the bank just

in case we ran into trouble.

I thought to myself, $80,000 is an obscene amount of cash tokeep in a business doing over a million dollars turnover!

That said, in all his time in business my father never encountereda cash flow issue after he had but that reserve. Yes businessebbed and flowed, as it does, but he was always cashed up

enough to weather the storm. The same cannot be said about
http://dnbsmallbusiness.com.au/News/Business_failures_on_the_rise/indexdl_7079.aspxhttp://dnbsmallbusiness.com.au/News/Business_failures_on_the_rise/indexdl_7079.aspx


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some of his competitors, who came and went during his time inbusiness.

In corporate finance there is no definitive guideline to how muchcash you should keep in the bank. Too little and youredependent on debt and at risk of insolvency, too much andyoure undercapitalized.

That being said, in my studies I have found that there certainly isa guide in personal finance. It is three to six months of livingexpenses. Translated into a business context, this would be three

to six months of critical operational expenses. A three monthoperational runway gives you just enough time to identify andresolve any cashflow issues before they destroy your business.


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Part 4: Whatyou werenttold aboutcashflow

Profit Cashflow

Personally, I shudder every time I look at our profit and lossstatement. So much so that I dont even bother looking at itanymore!

Why?

Without boring you with the technicalities, your profit and lossworks on an accruals basis. It includes sales and purchases thatmay not necessarily have been paid for. Conversely a cashflowstatement will include cash transactions but not sales andpurchases made that havent been paid for.

You need to understand both. Just because youre profitable doesnot mean youre cashflow positive. A classic example comeswhen I visit a new client who might be in a bit of cashflowtrouble.

Client: I just dont know how this is happening, wereprofitable.

Me:You may be profitable, but you have thousands of dollarsin stock and debtors from sales that need to be converted tocash.

This is why you need to be looking at your cashflow statementsas well as your profit and loss.

Types of Capital


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The Institute of Chartered Accountants Australia describescapital as any form of wealth used to create more wealth.

As the saying goes, youve got to spend money to make money,thats what capital is all about!Now there are three main types ofcapital which I will discuss in more depth.

Fixed Capital

This is cash used for purchasing assets. This typically includesthings valued over $300 that have physical characteristics that last

longer than a year (ie not consumables). Examples include thingslike computers, furniture, machinery, vehicles and even buildings.Think property, plant & equipment. It can also includeintangible assets like trademarks and patents, but I dont wantto confuse you more than necessary today. This cash oftencomes from startup funds, equity or loans but then can also befunded in the future from cash reserves (if such a thing evenexists). All you need to know, is think fixed assets, think longterm.

Growth Capital

This is used to finance things such as new markets, new ventures,new products or simply growing the business. You can fund itout of debt or equity investing or you can use the cash left at the

end after everyone (including yourself as owner) has been paid.

Working Capital

This is the important one! This is the funds used to run thebusiness day to day. Working capital covers operational costssuch as rent, electricity, stock, wages and everything else; itsfunded from sales! More specifically the collection of cash fromsaid sales, because a sale is pretty much useless until youve got


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cash in the bank. Were going to cover working capital in muchmore depth considering this is the hot topic.

Sources of Capital

Equity

Equity exchanges cash for ownership rights and a share of theprofit. A classic example of this is shares which grant theshareholder the capital value of the share, some voting rights and

a share of profit proportionate to the shareholding.

There are many sources of equity funds available to anorganisation, including:

Personal savings

This is often the first place that start-up entrepreneurs obtain

their funds from. It ensures that they retain full control over theirventure.

Reinvestment of profits

This means that third parties do not need to become involved inthe business and the entrepreneur retains full control.

Friends and family

This can provide an alternative source of funds if the personstarting the business does not possess the necessary fundsthemselves.

Venture capitalists & Angels


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These are investors (individual or corporate) that have availableexcess wealth to invest. Their motivation can be purely economic(i.e. they see a possibility of a good return in excess of the

perceived risk) or they may have a desire to see the initiativebecome a success. For example, investors in biotechnology eitherinvested because they saw the possibility of higher returns or theyfelt that the industry was an excellent alternative to thepharmaceutical industry and, thus, for the greater good ofmankind. Venture capitalists often do not become involved inthe day-to-day operations of the business.

Partners or additional shareholders

The use of partner funds is another alternative, but usually ashare of control will be exchanged in return. To what extent thisoccurs depends on the volume and dollar value provided by theadditional investors and this may be a major factor in the fundingdecision.

Issuing Stock

The ultimate source of equity finance and additional shareholderscould be to float the company on the Australian SecuritiesExchange (ASX).

Debt

Debt exchanges the cash for the right to receive that cash back ata later time, with additional interest paid either periodically or atthe end of the debts term.

Commercial banks

These funds can be short-, medium- or long-term. They can be

funded on a secured or unsecured basis and the level of security


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held will often determine the interest rate that is charged. Mostbanks calculate the interest rate charged based on the declaredrate adjusted by a margin to take into account the degree of

perceived risk associated with providing the loan. The greater theperceived risk, the higher the additional margin will be.

Non-bank lenders

These are often brokers, smaller lenders or other commercialinstitutions or cooperatives that will provide funds, usually withhigher interest rates than commercial banks.

Again, friends, family and other fools may lend you money, butrather than equity they simply expect their investment back withsome interest perhaps

Owners and shareholders, can potentially structure their capitalas debt rather than equity depending on the structure andpurpose of the cash.


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Part 5: The Answer!

Inventory / Work in ProgressInventory for those in product business is the stock you buy orfinished goods youve made that are available for sale.

Work in progress for those in the service business is work thatsbeen started but not completed. In the manufacturing businessits stock that has not been completed yet.

Don't order too much (or too little)

Inventory management is a delicate balancing act. Order toomuch and you've forked out good money for stock that's goingto be hanging around for a long time. Order too little and you'restuck with stock-outs that are going to cost you business and

cause you administrative headaches. The trick is finding just theright amount to order to keep things ticking over. If you'reconcerned ask your accountant about economic order quantitiesand inventory management.

Plan ahead

Spend a little more time considering your inventory needs for the

month, this can go along way for getting your inventory levelsright.

First in, first out

Stock that came in first should be going out the door beforemore recent additions are sold. Don't promote new stock, if you

can move the old stock first.


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Accounts Receivable

Accounts Receivable or Debtors are what is created when

someone agrees to buy your stuff, you have invoiced them butyou havent been paid yet.

Ensure you issue your invoice promptly

This is probably the easiest thing to control and a primecontributor to lock-down. You've got to get in while its still in

your customer's mind how good the product or service was.

Send invoices by email as well as post. This will save you a day ofpostage and will make doubly sure that the invoice hits its target.

Make sure your invoice is clear, concise andaccurately spells out the terms of payment

This will ensure that there is no ambiguity to the terms of thecontract.

Make paying the invoice easy

Now I'm not saying that you need to rush out and sign up forBPay or credit card merchant facilities. It however makes sense

to offer a cheque and an electronic funds transfer option to allowthem to deposit straight into your bank. Most people haveinternet banking and this will save you visiting the bank todeposit cheques.

Follow up immediately with invoices that exceedterms


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Most of the time your invoice has been mixed up in a pile ofpaperwork, or simply forgotten about. A gentle reminder to yourcustomer can go a long way to getting you paid sooner.

Don't offer credit to everyone

Business credit is basically like a loan. Would you lend money toanyone off the street? Then you probably shouldn't give credit toanyone off the street. Credit should be earned through a goodworking relationship or a good reputation.

Ask for credit references

Many big businesses will provide you with a form that needs tobe completed in order to obtain credit terms. This form will askyou to provide the details of suppliers you currently have creditterms with; the company will then follow up with thesecompanies and assess your credit worthiness.

Ask for deposits

If you ask for proportion of the payment upfront before thedelivery of the goods or service, you'll have at least covered someof your costs while you're waiting for the invoice to be paid.

Ask for the money up front or cash on delivery

It's a bold thing to say I know, but you don't walk out of thegrocery store with a trolley full of food and pay 30 days later, sowhy should your business be any different. I know business tobusiness credit is almost expected these days, but it is at leastworth investigating this option. It will essentially resolve all yourcash flow problems.


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Accounts Payable

Accounts Payable or Creditors are the people whom youve

received goods or services from, youve been invoiced and youhavent paid them yet.

Get organised

Keep all the bills in one place. Get them onto your accountingsoftware as soon as they come in.

Creditor scheduling

It pays to know who you have to pay and when you have to paythem by. It will help you plan and manage your cashflow better.

Strategic release of creditors

Find out what the due date is and pay on the absolute last day.This cash can be used for working capital in the meantime.

Tell the supplier if you're having trouble paying

If you believe that you're not going to be able to pay yourcreditors in time, call them before they call you. Explain the

situation. They will understand because all businesses have beenthere. It will go a long way to preserving your relationship withyour suppliers.

Prioritise your creditors

If you have to juggle your bills; figure out which bills are a higherpriority and pay them first. There's no point paying your

stationery company first if your electricity is about to get cut off.


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Cashflow Statement Monitoring

Cash from Operations

This is pretty simple; its cash from your day to day operations. Itincludes sales, purchases of stock and other overheads like wages,rent, electricity, advertising and is funded from WorkingCapital

Cash from Financing

This encompasses cash raised and paid in respect to raisingGrowth & Fixed Capital

Cash from Investing

Cashflow from investing is a confusing one because you thinkissuing shares is investing, but its actually the opposite, investing

activities are concerned with what you actually do with themoney raised from your financing activities. Typically youregoing to invest them in fixed assets such as property plant andequipment

Key Performance Indicators

Cash at Bank

This may sound a little remedial, but the cash in your bank isprobably the best key performance indicator of your business.Its easy to measure and it tells you a lot. If theres no money inyour account, I doubt your cash flow is looking too healthy.

Debtor Days


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Debtor days is the number of days it takes you on average toreceive money from your customers after they have made apurchase. Obviously it does not apply to business owners who

do not extend credit to their customers. For all those that dohowever this KPI tells you an interesting story interesting storyabout your cashflow.

Debtor Days= ((Opening Debtors + Closing Debtors) 2) Sales x 365

Creditor Days

Creditor days are the opposite to debtor days. Put simply it is theaverage number of days it takes you to pay your suppliers. Ideallyyou want to maximise your creditor days, but at the same timeyou dont want to be a jerk to your suppliers. Ideally you justwant to pay on the day the invoice is due.

Creditor Days= ((Opening Creditors + Closing Creditors) 2) Purchases x 365

WIP/Inventory Days

This metric measures the number of days work in progress orstock is held by the business before it is sold. Ideally you wantthis number to be smaller rather than bigger. Once again this is a

fine line between having too much stock instead of cash versushaving not having enough stock and missing sales.

Inventory Days = ((Opening Stock + Closing Closing) 2) Cost of Sales x 365

WIP Days = ((Opening WIP + Closing WIP) 2) DirectCosts x 365


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Part 6: Implement Now!

Set some cashflow goals

How much cash do you need?

Think about it, what is the absolute minimum cash balance youneed in the business bank account to help you sleep at night?Feedback from our clients in established small businessessuggests that the adequate sleep factor would be achieved ifabout 10% of overheads were maintained as a cash balance.Obviously this number varied between different types ofbusinesses, but youll know intuitively how much cash you needin the bank to sleep easy.

Whatever the number is, write it down and put it somewhere youwill see it every day.

How much cash do you actually want?

This is a question I ask a lot of my advisory clients, How muchcash do you actually want? Business owners often look at mewith a puzzled expression on their face after I ask this question. Ifind that many business owners have goals around sales andprofitability but not around cold hard cash.

Its a valid question and one you should have an answer to. Onceagain, write the magic number down and put it somewhere youcan see it.

Get a cashflow forecast


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Say after me, A cashflow forecast is the most importantfinancial report I should be looking at. Everything else is nice,but if you dont know whether youre going to have enough

money to pay your bills next quarter, you should probably getyour act together.

I find that business owners get confused by the notion ofcashflow forecasts and thus they get scared and dont evenattempt them. But youre not one of those business owners, areyou? Thats what I thought. Get a cashflow forecast done, I dontcare who does it, just get it done.

Implement one new idea a month until youget it done

Theres a whole raft of little mini projects from part 5 that youcan attack to improve your cashflow. Try not to overdo it or youmay get overwhelmed and then just not do anything it at all. Just

start with one mini project each month, if youre a high achieveryou can go hard later. In the meantime, just start with one.

Quickly brain storm a list of 10 small projects that you canimplement in your business to improve your cash flow. Oncethats done, rank them in numerical order of priority with respectto which ones will be the easiest to complete (10 being theeasiest, 1 being the hardest). Then which ones will make the

biggest improvement (10 being the biggest, 1 being the smallest).Tally the totals and then rank them in order of the totals. 10 willbe your first project, 1 will be your last. An example of this canbe found overleaf.


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Ease Impact Total Rank Project9 8 17 9 Switch to cash on delivery for all

new customers

3 9 12 6 Convert your existing customersto cash on delivery

5 7 12 7 Outsource AR function tospecialist

8 2 10 4 Set up automatic statements togo out at the end of every month

4 5 9 3 Pay your bills on the day they aredue and no earlier

7 6 13 8 Implement a cashflow smoothingsystem for big bills likeelectricity, insurance or tax.

6 4 10 5 Finance new equipment on anoperating or finance lease.

2 3 5 2 Implement a JIT inventorysystem

1 1 2 1 Identify your economic orderquantities

10 10 20 10 Call your accountant to talkabout cashflow


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About the Author

Chris Hooper is a high school dropout cumaccountant, who after dropping out hedecided that he wanted to, Figure out themoney thing.

At age 19 he went on to get a Diploma ofBusiness, then a Bachelor of Commerce and then a GraduateDiploma in Chartered Accounting. He received a full scholarship

for a Diploma of Management through the Young BusinessLeaders Program. He now tutors accounting at The University ofSouth Australia and privately mentors several students from alllocal universities.

Through acquisition and partnership he became a partner atCirillo Hooper & Company at age 24. After a merger withNational Accounts, Chris became the CEO of the new company

Accodex, where he continues to work.

In addition to several not for profit directorships in his earlytwenties, he was also one of the co-founders of the Startup ClubAdelaide. He then went on to establish Startup Adelaide Inc thepeak body for entrepreneurship in South Australia.

At age 25 he was amongst the youngest recognized businessmenin the book, BBQ to Boardroom. At age 26 he received theAchievement Award from the Young Business Leaders Programas well as a mention in Anthills 30 Under 30. At 27 he wasawarded Young Citizen of the Year by Adelaide City Council andYoung Manager of the Year by the Australian Institute ofManagement SA.

Documents

Chris Hooper - Who Broke My Cashflow