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How To Reduce Your Cash Flow Problems and Get Paid On Time
| Guest post by: Lorraine Pirihi |
Article Overview: 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.
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Free Download - 3 Secrets to Finishing Work Earlier By Lorraine Pirihi |
How To Reduce Your Cash Flow Problems and Get Paid On Time
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 $97 a month. If you were going to invest in this program, which option would you choose?
The Final Word
Getting paid for your products and services on time is vital ...that's if you want to stay in business.
Many business owners']);"> small business owners simply do not know how to set up their systems and/ or put off the chore of invoicing, or are totally disorganised and don't even know it!
Productivity is not just about time management. A major part of it is YOUR Personal Effectiveness and having the knowledge to know what to do and HOW to do it....investing your time and money on the RIGHT things so that at the end of the day you achieve outstanding results. This in turn leads to more profit in less time for YOU!
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About the Author: Lorraine Pirihi RSS for Lorraine's articles - Visit Lorraine's website Lorraine Pirihi, The Productivity Queen, is Australia's leading Productivity Specialist and creator of "The Productivity and Profit System TM" the complete one-on-one training program for solopreneurs and small businesses that shows business owners exactly how to work less and earn more! To receive your F.R.E.E. CD & Report "3 Steps to Dramatically Reducing Your Workload and Stress While Maximising Your Profit$! ($77 value) go to http://www.productivityqueen.com
Click here to visit Lorraine's website   How To Manage People Effectively How to Outsource to Free Up Your Time and Increase Your Income How To Organise Your Financial Future Self Management is the Secret to Your Success Are You Wasting Your Own Time |
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Improving Cash Flow
- How do I improving Cash Flow? What the best way to improve it to another 100% growth YOY?
Has anyone does this or achieved this using online marketing?
Thanks,
Roberts
Re: Improving Cash Flow
- Thanks for your information.
guide on how to avoid the problems of over trading. <-- Where is this guide? Any URL?
guide on debt factoring and invoice discounting: the basics. <-- Where is this guide? Any URL?
I just want to learn more about this. I am also looking for a good article on:
What exactly is Cash Flow?
Ways to improve cash flow at individual level and organizational level?
I think it is a problem of thinking and mind sets problem. If we can change the way of spending, we can have more Cash.
Robert
Re: UPDATES: New Campaign! New Layout! New Ideas!
- We've also expanded the list for Contest and All-Time Leaders. It's great to now see David and Yinka on the All Time list and recognize the contributions they've made to the forums!
No B.S. Time Management
- A great book I read on Time Management is No B.S. Time Management for Entrepreneurs by Dan Kennedy.
Re: Has anyone used Spyfu.com?
- I have also used Spyfu. It's good to find out what kind of strategy your competitor's are following in Organic and Paid SEO. We can also find out the list of organic keywords our competitors are working on along with their organic ranking in Google. It's really an interesting tool.
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