Most importantly learn how to help your business survive and thrive by understanding your numbers. Above all I really hate not getting paid on time without good reason. This episode is about what you can do to get paid on time.
Why is getting paid on time important?
Above all getting paid on time is important. That is to say if you don’t get paid on time, you are going to have people knocking on your door. In other words the cash generation part of your business is your customers.
In this episode
Keeping cash flowing
Maintaining a positive relationship and getting paid
Tips and tricks
Don’t get side-tracked. Therefore 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. As a result this will help you achieve getting paid on time.
However, 30 percent of business don’t communicate their terms from the start. Make sure you establish those guidelines from the very beginning. Above all make sure you portray to the client that you take your credit terms seriously.
Likewise If you give a customer an invoice, you need to keep an eye on it. In addition have a 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.
In conclusion 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.
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