Starting your own business is exciting, but it can also be overwhelming. There are a lot of decisions to make and tasks to take care of, and sometimes things can slip through the net. It is not uncommon for a business to experience hard times. When you’re starting out some people may take advantage, you haven’t built up the experience to recognise a bad payer, and as a result, things can spiral out of control. There are some ways to try and achieve some balance and build your business a safety net.
Lay out the basics
When you’re starting out, it can be exciting to get some customers on board. However, it is important not to skip the basic steps. At Commercial Domestic Investigations we offer a credit reporting service that allows you to gain access to your customer’s key financial information and payment habits. Credit reporting your clients allows you to prepare yourself for delayed payments meaning you can manage your cash flow more effectively.
Make it personal
Every business is different, that’s a fact. So you cannot expect to treat all of your clients in the same way and for them to be happy. It might seem like a lot of unnecessary effort but taking the time to build a relationship with your contact and encourage communication means that you can deal with any issues as and when they arise, with a simple phone call. On top of problem resolution, having a personal approach to credit control makes the customer feel valued, and a valued client usually returns.
Do you have problems with a few clients who regularly pay late? If so, then take a look at how late they make their payments every month. If it is becoming a regular issue, then this will help you to forecast your cash flow. Regular credit checks on your clients can alert you to any problems but be sure to stay in contact with them, just checking in will mean a lot to them.
It’s basic business sense, without a steady cash flow your company will be in trouble. By streamlining your credit control procedures, you can go some way to balancing your accounts. Be sure to invoice your client as soon as the service or product has been supplied; this gives the customer a good amount of time to prepare for payment date. Get in contact with your client a few days after sending the invoice, this way you can ensure that the invoice has been received and that the customer has no questions or problems. This call means that the client can’t pretend the invoice was never received. Try to collect all of your invoices a few days before you are due to pay out; this gives you a buffer in case of a late payment.
Work below your means
Remember that your business doesn’t have to have the best office, the best technology or the best office furniture, start small and work your way up. Work out your income and expenses every month, factor in some saving to protect yourself in emergencies.
At Commercial Domestic Investigations we understand the hardships of running a business, that is why we offer a range of services to help you on our way; from credit reporting to invoice collection we can help ease the pressure of credit control to allow you to focus on other tasks, if you want to find out how we can help your business contact us on 08444 159200 or email firstname.lastname@example.org.