How To Reduce Your Cash Flow Problems and Get Paid On Time
How To Reduce Your Cash Flow Problems and Get Paid On Time
Before working with me, one of my clients who has a pool building business, told me that they only asked for a 10% deposit at the start of the project and then invoiced the balance at the end of it.
The process of building a pool takes weeks! In the meantime her company would have to cover wages, equipment and all other costs throughout this time. What often happened at the end, the clients were slow to pay causing them even more financial stress.
It was easy to fix their cash-flow issue. 50% payment was made on the signing of the contract with progress payments throughout the key stages. Final payment was made before completion.
Work would not continue until each progress payment had been made.
If they had waited for that last payment, chances are it would have been delayed. No payment, no work! It's amazing how quickly you can get your money when you make these simple changes to how you do business.
Never deliver anything without some form of payment.
Wherever possible get credit card details and partial or full payment up front, especially when dealing with first time clients. If you're offering a service, have new clients sign a contractual agreement and pay a percentage retainer fee before commencing work. Most professionals have adopted this practice and it is a recognized part of doing business.
Avoid having to rely on your clients paying you by bank transfers, cheques etc. You want to have control over money owed to you. Allowing payments to be made by a bank transfer or cheque means you have to rely on your client to actually do this.
If you're worried about the bank or credit card company fees, increase the cost of your products and services to incorporate them.
If you offer high priced services and products, consider setting up an automated payment plan over a period of weeks or months to make it easier for clients to buy from you.
For instance, my Productivity and Profit Home Study System is $697. You can choose to pay the amount in full or 8 easy instalments of $97 a month. If you were going to invest in this program, which option would you choose?
The Final Word
Getting paid for your products and services on time is vital ...that's if you want to stay in business.
Many small business owners simply do not know how to set up their systems and/ or put off the chore of invoicing, or are totally disorganised and don't even know it!
Productivity is not just about time management. A major part of it is YOUR Personal Effectiveness and having the knowledge to know what to do and HOW to do it....investing your time and money on the RIGHT things so that at the end of the day you achieve outstanding results. This in turn leads to more profit in less time for YOU!
How To Reduce Your Cash Flow Problems and Get Paid On Time - To learn more about this author, visit Lorraine Pirihi's Website.
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How often do you hear business owners complain that their clients are 'slow payers?'
Before working with me, one of my clients who has a pool building business, told me that they only asked for a 10% deposit at the start of the project and then invoiced the balance at the end of it.
The process of building a pool takes weeks! In the meantime her company would have to cover wages, equipment and all other costs throughout this time. What often happened at the end, the clients were slow to pay causing them even more financial stress.
It was easy to fix their cash-flow issue. 50% payment was made on the signing of the contract with progress payments throughout the key stages. Final payment was made before completion.
Work would not continue until each progress payment had been made.
If they had waited for that last payment, chances are it would have been delayed. No payment, no work! It's amazing how quickly you can get your money when you make these simple changes to how you do business.
Never deliver anything without some form of payment.
Wherever possible get credit card details and partial or full payment up front, especially when dealing with first time clients. If you're offering a service, have new clients sign a contractual agreement and pay a percentage retainer fee before commencing work. Most professionals have adopted this practice and it is a recognized part of doing business.
Avoid having to rely on your clients paying you by bank transfers, cheques etc. You want to have control over money owed to you. Allowing payments to be made by a bank transfer or cheque means you have to rely on your client to actually do this.
If you're worried about the bank or credit card company fees, increase the cost of your products and services to incorporate them.
If you offer high priced services and products, consider setting up an automated payment plan over a period of weeks or months to make it easier for clients to buy from you.
For instance, my Productivity and Profit Home Study System is $697. You can choose to pay the amount in full or 8 easy instalments of $97 a month. If you were going to invest in this program, which option would you choose?
The Final Word
Getting paid for your products and services on time is vital ...that's if you want to stay in business.
Many small business owners simply do not know how to set up their systems and/ or put off the chore of invoicing, or are totally disorganised and don't even know it!
Productivity is not just about time management. A major part of it is YOUR Personal Effectiveness and having the knowledge to know what to do and HOW to do it....investing your time and money on the RIGHT things so that at the end of the day you achieve outstanding results. This in turn leads to more profit in less time for YOU!
How To Reduce Your Cash Flow Problems and Get Paid On Time - To learn more about this author, visit Lorraine Pirihi's Website.
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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