How to get cash into your business today

There are times when business owners’ look at their bank account and worry about how they are going to pay their overheads this month. Cash flow is one of the main reasons business owners lay awake at night. Sometimes it is hard to see the proactive way forward to resolving cash flow problems.

Here are 5 straight forward steps you can take today to ease your cash flow worries

1. Increase your prices

When is the last time you increased your prices or had a “price adjustment”? If this makes you worry, don’t! If your customers like the service or product you provide they won’t mind you having a “price adjustment.”

Before you dismiss this idea, work out your figures. Know that people don’t always buy from the cheapest company, many people know that “they get what they pay for.”

2. Call customers who you’ve already invoiced

A few days after invoicing your customer, give them a call to confirm they have received your invoice. Ask them if they are able to pay today? If they can’t, ask for the payment date, make a note and use this information to ensure your wage and overheads are covered. This is basic but effective credit control.

3. Recover aged debts

How many customers are late paying your invoices? Are there any customers who are not responding to your requests for payment? The ones who have not paid you or who keep promising to pay but don’t, send their details to a debt recovery agency.

Does this worry you? We find that most of the time people just need a polite, but firm letter or call from a third party to encourage them to pay. We also find that many of the debtors we chase for payment often ask us to chase debts for them too. Debt collection is not aggressive or invasive when it is done correctly.

This is a great way to get a cash flow boost.

4. A, B & C customers – Get rid of your ‘C’ customers

Imagine your customers in categories of ‘A’s, B’s & C’s. Your ‘A’ customers are your best ones, they spend the most, pay on time, pleasure to work with. ‘B’ customers are good too, the spend good money, pay on time, no trouble to work with. However, your ‘C’ customers are a nightmare! They call all the time, waste your time, hardly spend any money, change their mind and they drain your energy. ‘C’ customers take your focus away from your ‘A’s’ and your ‘B’s’!

Do any of your customers take up too much of your time for the amount of money you are earning from them? If you have a nightmare (C) customer who you dread speaking to, now is the time to say “thanks, but no thanks,” and move them on. If your customer is costing you more money and stress than is needed, don’t be afraid to move them on. “When one door closes….”

5. Contact existing customers

It is easier and more cost-effective to sell to your existing customer base than it is to attract new customers. So call or email your existing customers and ask for more work or see if they need more of your product. You could also ask them for referrals !

The main thing is to be proactive and do something about your cash flow to get cash in to your business.

Worrying about it won’t change anything, doing something about it will help.

Need more advice on recovering aged debts? Find out more here.

Contact us today