5 Killer Mistakes – Part 3
My past 2 posts covered the first four of the killer mistakes you can make that will not only make you lose your customer, client or patient, but possibly your entire company. Today we’re going to talk about the fifth killer mistake:
Up Cash Creek Without a Paddle.
Even when business is good there’s still a chance of running out of cash flow. You have to always be prepared for a slow in sales or a surge in expenses. One of the keys to balancing your cash flow is to get your clients to pay on time. This can seem like a nightmare, but is absolutely essential to a successful business and it’s not as difficult as you first think.
Here are some tips to speed up the payment process:
- Train your staff on how to train your customers to make payments by the due date.
- Always send invoices on time.
- Always make sure your invoices are correct before sending them out.
- Learn how your client processes payments on their side and find out precisely where to send invoices.
- Find out who’s in charge of authorising payment, so you know who to contact if needed.
- Have a follow-up procedure in place, just in case.
- As a last resort, call your contact to ask questions.
You also need to make sure your cash flow is protected. You can do this by:
- Always know which accounts need to be paid and when. Resist early payment.
- Negotiate with your suppliers for the lowest cost possible.
- Have a bank contingency plan in place.
- Build your own inventor network.
These are all great ways to protect the cash flow of your business and prepare for customer transitions and slow sales. These last few articles are all about finding and catching your big fish clients. These clients are essential to your success and your need to take the time to work through each of these steps carefully and correctly for the best success.
If you need help with any step of the process, try our FREE test drive for access to a wealth of great tools and resources as well as our business coaching staff.