In the last 2 posts we covered the first four big mistakes you can make that can adversely impact your chances to seal a deal with a prospective client. Today we’re going to talk about the fifth big mistake: Up Cash Creek Without a Paddle.
Even when business is good there’s still a chance of running out of cash flow. You must always be prepared for a slow in sales or a surge in expenses. One of the keys to balancing your cash flow is to get your clients to pay on time. This can seem like a nightmare, but is absolutely essential to a successful business.
Here are some tips to speed up the payment process:
- Always send invoices on time and adjust your records for potential audits.
- Learn how the client processes payments on their side and find out precisely where to send invoices.
- Find out who’s in charge of processing orders and payment, so you know who to contact if required.
- Have a follow-up procedure in place, just in case.
- As a last resort, call your contact to ask questions.
- Always make sure your invoices are correct before sending them out.
You also need to make sure your cash flow is protected. You can do this by:
- Always knowing which accounts need to be paid and when.
- Negotiate with your suppliers for the lowest cost possible.
- Have a bank contingency plan in place.
- Build your own inventor network.
These are all great ways to protect the cash flow of your business and prepare for potential slow sale periods. These last few posts have been about landing those ‘big fish’ clients. The clients that are essential for the success of your business. It’s imperative to take the time to work through each of these steps carefully and correctly for the best outcome.
If you need guidance with this process, try our GUIDED TOUR for access to a wealth of great tools and resources as well as our business coaching staff.