We’ll let you in on a little secret: If you want to improve your business, you’ve got to start with your Quote to Cash. Sure, there may be some other processes that may seem easier to start with, but focusing on your Quote to Cash first will strengthen the business as a whole and amplify the impact of those other improvements.
But this is about more than your bottom line. Leaks within your Quote to Cash can affect everything from your customer relationships to your spending strategy and even to your employees’ experiences. Read on to find out what other symptoms may come from an inefficient Quote to Cash, so you can keep an eye on them before they become issues.
In some cases, a broken Quote to Cash system can create tension and misalignment between your departments. This misalignment can lead to errors in quotes, orders, or invoices, poor service, broken relationships with partners, and, worse, the risk to your reputation. Contacting customers for late payment due to a broken system can cause stress or tensions with your sales team when they’re trying to win new deals.
Your business culture is a direct extension of your management team. If your manager is stressed and worried about your Quote to Cash system, this will reflect in the morale of your staff, especially if they’re concerned about their long-term future with the company.
A shoddy Quote to Cash system can affect more than your business outcomes. It can cause unnecessary stress from a lack of cash flow that can influence all areas of your life and business. Stress affects three areas – physical, mental and behavioral health. So it’s crucial to ensure your organization has everything it needs to keep you and your team in good shape.
It goes without saying: lack of adequate resources means your business will be unable to grow. However, to reach your true potential, having the right tools under your belt can help your organization be successful.
Cash flow problems can cause you to ignore your pricing model or experiment with value pricing because you’re scared to lose business. As a result, deals are priced lower, or discounts are offered to close anything possible. While cash influx is the goal, cutting your business short can cause margins to be lower than your targets, which can cause further cash flow issues down the line.
You hold off on hiring because cash is tight, but you know you have work coming in. A lack of proper staffing, quality, and customer service can negatively impact your business. You may also be having the inverse problem where you hesitate on firing because the cost of searching, replacing, and retraining is greater than struggling along with a mediocre employee.
You keep bad clients because you need the cash flow, but bad clients might not pay promptly, causing strain on your service team and bottom line.
If there are cash flow problems, Maslow’s Hierarchy of Needs comes into play, which means you’re going to default to what’s secure and safe. But making spending decisions out of fear usually means you don’t invest in your business. Cash flow problems can hold you back from taking advantage of opportunities, like sales on products your operation needs, because you lack the funds.
On the other hand, a lack of cash flow can cause businesses to borrow money from non-traditional lenders, leading to poor credit or higher interest expenses in the long run.
Streamlining and measuring your Quote to Cash is critical. By using the right tools and tracking valuable KPIs over the year, you can gather actionable intelligence that will help you quantify ROI and make good long-term decisions on spending. If your Quote to Cash system needs a little help, Chassi is here for you. Drop us a line, and we’ll help you find the right solution for your Quote to Cash woes in less than 30 days with a Rapid Assessment.