Every business will feel it at some point. The moment when you feel that you have too many problems and you cannot overcome them. You are not alone, the issues that you face are generally very common problems and can be solved by looking at the situation a little differently. Here are 4 of the most common issues and solutions.
Getting paid on time
Many businesses face this issue, and unfortunately it is a growing problem. Especially amongst SME’s. Sometimes, despite all your best efforts, clients will not pay and there are many things that you can do if this is the case. However, there are a lot of things that you can do to encourage your clients to pay on time.
Make your invoices client proof, ensure all details are correct before sending it and spend time building a strong relationship with your clients. By having a good relationship, it becomes easier to chase payments down the line and may also encourage repeat business.
Send the invoice at the same time every month, this will get your clients into the habit of paying you around the same time of every month. They will begin to expect your invoices, making it more likely that they will pay on time.
By offering discounts or settlements to non-paying customers, people like to get a deal and are much likely to make early (or on-time) payment if they get something in return.
You can carry out a credit report on your customers, in doing this you can get a good idea of their payment history which is useful when it comes to negotiating payment terms. If a client has a poor credit report then you may want to get a part payment or deposit up front to avoid problems down the line.
Struggling to get funding
Most small business need funding when they first get started and the government set aside funding specifically for start-ups and small businesses. Banks may not always be the best option for your funding so it is important to do your research and find the most appropriate solution for you.
It is worthwhile checking your businesses credit report as this will heavily impact your ability to secure funding. If your business credit report is poor, lenders may look at your personal score take the time to build up both scores.
Cashflow is unstable
Cashflow is a good representation of how your business is doing, if your cashflow is unstable then it may be a warning sign that something is wrong. If money is not coming in regularly then you may be unable to pay suppliers, and this issue can snowball quite quickly.
Analyse your outgoings and check your expenses. Is there an area that you can cut-back on? Try and run the business below its means to keep more money in the bank. Don’t be afraid to chase late payments, employ the services of a debt recovery agency if you have too many invoices to keep on top of.
New business is slow
Every business will experience ups and downs, sometimes it is not only your efforts but the circumstances of the target market that can slow trade down. For example, a lot of people take holidays during the summer so it may prove difficult to speak to a decision maker during this time.
It is important to run your marketing campaigns at the right time, to the right people. Revamp your marketing campaigns to make sure they are reaching the right people.
If you have concerns about your cashflow, have outstanding invoices but no time to chase them or just want to speak to someone about your options, then contact Commercial Domestic Investigations. Our fully qualified team are dedicated to finding a debt recovery solution for you. Contact us on 08444 159200 or email firstname.lastname@example.org.