Learn how to help your business survive and thrive by understanding your numbers. I really hate not getting paid on time without good reason. This episode is about what we can do to get people paid on time.
Why is paying on time important?
If you don’t pay on time, you are going to have people knocking on your door. The cash generation part of your business is your customers.
Don’t get sidetracked. Make sure you do your due diligence on the customer. If you can do a background check, do it. Make sure your customer knows what your business terms are. It’s important to communicate that clearly.
30 percent of business don’t communicate their terms from the start. Make sure you establish those guidelines from the very beginning. Also make sure you portray to the client that you take your credit terms seriously.
If you give a customer an invoice, you need to keep an eye on it. What is your follow up strategy? Have a system in your business that records, when, who and how much. At the end of the week, make sure you are looking at all your outstanding customers.
There is an inverse relationship of how many clients you have and who still owes you money. Bigger doesn’t necessarily mean better. If they are not paying on time, really consider how that is impacting your business.
Don’t differentiate thinking I like this person and I don’t like this person. Have a consistent system that you apply across the board. A business is a business. The longer you wait to be paid, the more likely it is you won’t get paid.
In This Episode
- Keeping cash flowing
- Maintaining a positive relationship and getting paid
- Tips and tricks