Part of dealing with customers is to make sure that they are satisfied, respond to their questions on time and deal with any objections that they might have. When payment date arrives, the table turns. Your clients will give you various reasons why the invoice is yet to be paid and will provide you explanations regarding what needs to happen in order to release the payment. For your convenience, we have prepared a list of
It wouldn’t now shock you if I’d say that not all clients created the same. As a business owner, you already know the difference between selling to consumers or small businesses like yourself versus engaging with a large company, perhaps an S&P500 giant. Large corporations, especially publicly traded companies have lots of rules, policies, and processes that are in place in order to make sure that no one scams them and in order to allow
Have a plan and start early – small business tend to send reminders too late, when the account is severely past due or if they are in immediate need for cash. Long term this is not a good business practice. Having a collections a policy for the business will help you keep yourself and your clients in check. Having a defined plan will help you to act systematically in order to get paid in full
Running a business is very exciting. I know it myself. Many times we focus on more interesting aspects of running it, such as sales, marketing, networking or service improvement. Most business owners neglect their finances, leaving it to their accountant. Often, when invoices are not paid as agreed, you might wait some time before addressing the issue with your clients. Truth is, most clients want to pay you but at the day of payment they
It is a common assumption that once you deliver the goods, the payment part will take care of itself. Most entrepreneurs are surprised that in real life it is seldom the situation. If you are operating in an industry that practices sales on credit, there is about a 50% chance that your invoices will be paid late. As a business owner, receiving payments late can put stress on your cash flow and jeopardize your livelihood.
Being self-employed can be overwhelming. After all, by definition, you are just a one man or a woman team that is responsible for everything. The difference between being someone else’s employee and working for a company is staggering. Let’s say that you are a designer. After working for several years at a big design studio you have decided to set up your own shop. After all, you were the best one on your team, and