Insolvency is impacting thousands of businesses every year, and obviously, it is the last thing that you want to happen to your business. Unfortunately, in a world of late payments and unreliable clients, it is easy for your business to spiral into insolvency if you are not careful. Fortunately, there are some things that you can do to protect your company.
It’s well known that happy staff are more productive, which can only be good for your business. If you can retain loyal and content staff then your recruiting and training costs will be much lower, you can invest in professional development for the staff that you have and become more efficient. The staff that have been with you will share your company mission and overall goals and understand the way that the company runs and your procedures. To keep staff satisfied then reward hard-work and consider running team-bonding sessions to build relationships within your organisation.
Lower bad debt
You shouldn’t borrow more than is necessary; excessive borrowing can make it appear as though your business is struggling financially, it also makes your repayments higher, leaving you in a worse position. If you fail to pay back the debt, it can seriously harm your credit report, damaging your chances of securing more funding in the future or even securing new contracts with suppliers. When you borrow money, define a repayment plan and stick to it, it helps if you have some excess capital to account for any unexpected costs.
It can be tempting to continually chase new clients, but in such a competitive world it’s important to look after your existing clients, customer loyalty is vital to your success. The chances are, you will lose some clients to competitors so always do your research, are they offering something that you’re not? Are they doing the same as you for cheaper? Competitor analysis will help you to adjust your own offerings. If you build a good reputation for customer service it can help to attract new business; your customer’s satisfaction should be a top priority.
Get paid on-time
Efficient invoicing is vital when it comes to getting paid on time. Send an accurate invoice as soon as the products/services have been delivered and where possible offer a range of different payment methods. Encourage customers to set up standing orders or direct debits; this will increase the chance of you being paid on-time. Before entering into an agreement, carry out a credit report on your potential client, this will show if they have a poor payment history or should be considered a high risk. This will give you the confidence to go ahead with the sale.
At Commercial Domestic Investigations, we offer a range of services to help your business with credit control. From credit reporting to invoice collection we can help improve your credit management and ultimately, help you to avoid insolvency. To find out more about our services, contact our expert team on 08444 159200, use our contact form or email firstname.lastname@example.org.