25 Nov The next step to increasing profit in your business
We’re now on step 3 for simple things you can implement in your business to increase your profit to deal with the cost of living increases.
My first ‘proper’ job, was as a Credit Control Administrator, working in telecoms in the mobile phone industry for The Caudwell Group, owned by John Caudwell.
After starting with the boring jobs of scanning documents, and data entry, I was soon put in the team who made outbound calls to chase up outstanding invoices.
I know for a lot of people this would fill them with dread, but I loved it and learnt heaps.
Those early days of managing payments, and especially late payments, has never left me!
I was reminded of it the other day when I was speaking to a business owner who’s gone through a particularly stressful few months to retrieve an overdue payment.
So, my tip for you today is to look at your debtors and your payment terms.
Firstly, if you have outstanding payments due, then follow these up straight away.
Secondly, review your payment terms.
The business owner who had the difficulty with the overdue payment ended up going to court to get the payment.
The lesson she learned is to take payment in advance going forward.
This is always the best practice to ensure you never end up with a bad debtor again.
You wouldn’t expect to do your weekly shop in Sainsbury’s and then ask to pay in 14 days time would you? Yet somehow, lots of service providers think it’s okay to do your work and then invoice for it afterwards.
If you’re not quite ready to take full payment in advance (why not?), then at least take a significant part-payment to ensure you are not left in the stressful situation of not being paid for work you have done.
Want to know how I can help you to increase your profit and achieve your goals in 2023? Book in a complimentary strategy session in my online diary here.
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