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common ��� obtaining revenue as quickly as possible can pay dividends by helping to relieve the stress that comes from regularly trying to pay bills. A 12-month forecast will help you see where the volatility may be in your schedule, enabling you to plan accordingly. Unpredictable events like bad weather, which can keep tasting room visitors away, are hard to predict, but you can use previous years��� records to estimate how many off days can be annually attributed to weather-related events. KNOW YOUR CUSTOMERS ���There���s a reason banks examine character when reviewing credit applications,��� noted Mark J. Snyder, a financial advisor in Medford, N.Y., on the fringes of Long Island���s www.cleanwinery.com e-mail info@arsenterprises.com Available from ARS/Pressure Washer Company (800) 735-9277 and can take action before it is too late. ���Not all clients are created equal,��� he said. ���Drop the ones that are constant headaches and provide better service to those who make business enjoyable. The business will be better.��� If you���re struggling with cashflow projections, you���re in good company. Most large companies say they cannot correctly forecast operational basics like inventory, receivables, payables and the underlying cash requirements to support them, according to an REL study: ���Working Capital -- Successes, Challenges and 2012 Objectives.��� According to the study, typical companies potentially miss quarterly working-capital forecasts (including inventory, receivables and payables) by up to 23%. Once a forecast is in place ��� a 12-month schedule is the most wine country. ���Personal references are important. You can learn a lot by examining a prospective customer���s bill-paying history. Does he pay his taxes, mortgage and other bills on time? What do former employees say about the firm? Obtaining this sort of intelligence can give you a clear picture of what to expect from new clients and what kind of relationship you can expect to have.��� Petit of Beacon Financial takes the argument one step further. Examine your customer base, breaking it down into three groups: good, average and poor. ���Try to make better customers from your good and average ones while thinking about what���s best to do with the poorer ones.��� Communication plays a large role in such matters. ���A letter advising your poorer customers that ���special terms��� will no longer be tolerated as of a certain date may be warranted,��� added Petit, who advises that such letters be written in a nonthreatening but businesslike tone. ���You can also offer an incentive such as a small discount to settle the account. Once the bill is paid, you need to seriously consider if the relationship is worth the effort. If you employ a collection agency, you���ll receive less money due to the fee and definitely end the relationship.��� If you���ve clearly identified the habitual slow and stubborn payers that are wreaking havoc with your cash flow, but still wish to keep them as customers, the most efficient solution may be to keep the relationship simple. ���The best way to avoid slow payers is by requiring up-front payment,��� said management consultant Ben Piper of Woodstock, Ga. ���This takes care of two problems: It gets rid of customers who won���t pay, and saves you the collections hassle.��� Joseph Finora Jr. is a financial writer and amateur winemaker in Laurel, N.Y. Comments? Please e-mail us at feedback@vwmmedia.com. 122 V I N EYARD & WINERY MANAGEMENT | Jan - Feb 2013 w w w. v w m m e d i a . c o m