with Simplicity Expert, A.Michelle Blakeley
In today’s fast-paced world, small business owners are even more hyper-connected and overloaded with information, choices, and distractions. One of the hardest things to determine is whether you’re on the right path or not. Great work requires taking risks. Couch Sessions offers practical information, new perspectives and quick tips to help point you in the right direction.
Are you a struggling, frustrated or just inquisitive small business owner? Got a question you just can’t seem to find the answer for? Please submit your small business questions here. Be sure to bookmark and check this page each week, your question and the reply could appear right here in “Couch Sessions” for entrepreneurs and small business owners. This week on Couch Sessions…
We deal with lower-volume, higher-paying clients. If we have one (ex)client that owes us for quite a bit of work we performed, is it a better spend of our time to aggressively pursue those receivables, or spend the time and energy in pursuing new clients? Josh Rubin, Creative Cali
It’s never good business practice to spend more time “chasing down money” than “actively generating money.” Be firm in your payment policies and consider getting more funds/deposit up front.
Resolve any known (and unknown disputes) as soon as possible with timely and candid communication.
Offer a sale or promotion on a high-volume, low-cost product or service. Think “low hanging fruit.” The sale or promotion could be done quarterly to offset the turn around time for your low-volume, high-pay clients.
Sometimes a standard well-written certified letter from an “attorney friend” is all that is needed to motivate clients to close their outstanding invoices
How do we address monthly cash flow problems? My firm specializes in IRS tax resolution and many of our small business clients fall out of federal and state tax compliance as a result of monthly cash flow shortages. They, and other businesses, would benefit greatly from tips on how to mitigate this very common problem. Michael Raana, Landmark Tax Group
Are sales forecasts based on solid information, metrics and due diligence? If so, clients should start with making sure they have a solid infrastructure in place for invoicing and collecting from all clients. Are terms and agreements in writing? Did they get a deposit? Did they provide an invoice upon delivery of product or service (or recurring invoice for retainer clients)? Is invoicing automated with platforms like Freshbooks, Xero or PaySimple? With a solid billing infrastructure in place, consider offering early pay discounts and implementing late payment penalties to clients.
Some other tips to increase monthly cash flow:
Now let’s talk about YOU! What’s keeping YOU up at night? Got a business issue you’d like some help with? Let’s talk about it! Click here or call (916) 287-1432
Simplicity expert, A.Michelle Blakeley is the source for understanding and knowing how to align your purpose, principles and priorities with simple practices. She masterfully delivers the right information with step-by-step guidance. What’s good for you is good for your business. As a result, her clients are holistically and authentically operating their business and experiencing energized realities. Connect with her on twitter at @simplicityinc or read through her new online magazine, Micro Business Therapy.