St John cool limo ... Chicago Drug testing

Solving the Late Paying Customer Blues

Nothing can drive a business down faster than customers who don't pay their bills as agreed. When you sell to customers on credit you are making an agreement with them. You will provide them with goods or services in exchange for their payment within the terms you agree upon. Period.

What I'm seeing more and more of is businesses using their suppliers as banks. Taking 60-90 days or more to pay a bill is becoming more and more common. I've seen some business owners shrug their shoulders and just accept that nothing can be done about it. That's just the way it is.

Naturally, I disagree with that approach. The reason you grant credit is to increase sales. But, the sales you want more of are the sales that pay and don't drag your business kicking and screaming into the Cash Flow Swamp.

So, what's a business owner to do?

Late paying customers can create a serious threat to the survival of your business. Whether you're just starting out or you've been in business for awhile, it's a critical business function to develop a solid plan to get paid.

Here's an example of a solid plan:

You decide your business will not grant credit. You decide to be paid up front before you provide services or products. You get set up to accept credit cards or use Paypal (or both). You communicate in no uncertain terms (nicely but firmly) what your payment terms are. You explain that payment is due before (or at) the time of service or purchase and that you accept cash, checks, money orders, credit cards and Paypal. Period.

Then, you stick to it with no exceptions. You make that a condition of doing business. Communicate it firmly and respectfully. Don't waffle or apologize. People who take advantage of others can sense weakness. So can people who always have a tale of hard luck and woe. It's human nature.

Remember, late paying or nonpaying customers are endangering the survival of your business. These are not the customers you want to do business with. You'll have nothing to show for your work but stress and poverty. If you want to do some of your work for people in tough situations, donate your time but do it with the understanding that the majority of your time has to be spent on work that pays.

If you're working on a big project, set the expectations before you start so that a condition of doing the project is incremental payments. A percent before you begin, a percent during the project at specified intervals, and the remainder due on completion. This gives you the option of stopping work if you're not getting paid.

As with all areas of business, the best Defense is a good Offense. Set the standard for how you'll be paid, communicate it, and stick to it.

Caroline Jordan, MBA helps small business owners understand, diagnose, and improve cash flow in their businesses. For more information and free resources to improve cash flow visit http://www.TheJordanResult.com/mastering.html.

In The News:

The number of "cold stunned" turtles has surged this year, with dozens already in care at New England facilities.
A mysterious monolith that went viral after its appearance in a remote Utah desert has been removed by an “unknown party,” according to officials.
NASA has started assembling the Artemis Space Launch System (SLS), marking an important milestone ahead of future missions to the moon.
A Japanese spacecraft that successfully "bombed" an asteroid after a 2 billion mile journey through space is close to returning to Earth.
Megalodons, the apex predator of the seas, may have gone extinct more than 3.5 million years ago, but experts may have discovered nurseries of the massive shark all around the world, according to a new study.
A newly discovered shark that lived 370 million years ago had some of its teeth hidden from its prey until they clamped down, according to a new study.
One of the rarest species of whales, a North Atlantic right whale, was found dead on a beach in North Carolina last week, wildlife officials said.
A chilling drone video shows a hammerhead shark circling a seemingly oblivious swimmer off a Miami beach.
A U.K. archaeologist is shedding new light on a fascinating ancient site beneath a convent in Nazareth.
An enormous fireball was caught on camera streaking across the night sky in Australia, before breaking up over the Tasman Sea.

Your Practice is Only as Valuable as Your Referral Base

Many physical therapists in private practice have the appearance of... Read More

Employee Induction - Are you Inducting your People - A Practical How To

In today's fast paced marketplace it is easy to neglect... Read More

How To Ruin Your Business

If you're like the rest of us, you've spent a... Read More

Carwash Franchisor Case Study

There are only a handful of car wash franchises in... Read More

What is Business Process Automation?

Business Process Automation or BPA for short. This was a... Read More

Hispanic Small Business Advantage

One thing I have noticed in my travels to different... Read More

Who Makes the BEST Alliance

What types of companies do you want to align yourself... Read More

Using Holidays to Put Some Extra Cheer in Your Cash Box

No matter your age or station in life, we all... Read More

Justice In Action

During the 1980 presidential campaign, candidate Ronald Reagan vowed, if... Read More

Making a Donation to Bring MORE Business

How a donation is different from a sponsorship and what... Read More

5 Small Business Management Questions to Help Choose Marketing Programs

As small business managers, we juggle limited resources in a... Read More

Financial Dose for Business

The goals of businesses have undergone much evolution from the... Read More

Challenging the Gospel of Growth -- Must Business Grow to Survive?

A cherished business doctrine is that growth must be a... Read More

A Look at Incorporating a Business in Florida

As you may know, there are many ways to incorporate... Read More

Australian Workplace Agreements - How They Work For You

The employer / employee relations environment has been constantly evolving... Read More

Market Makers Play a Significant Role in Reverse Mergers

One overlooked individual in the process of taking a company... Read More

7 Card Tricks That Improve Your Personal Networking Power

CARD SHARK7 Card Tricks That Improve Your Personal Networking PowerThe... Read More

Packing Material Thats Cheap!

Shipping materials can be expensive! Even the styrofoam "peanuts" can... Read More

Never Burn a Bridge

Why should you always maintain a good report with a... Read More

Is Your Business Making Money?

Is your business making money? Would you know?Figuring out whether... Read More

How To Get Slightly Famous in Print

Early in my career, I wrote an article for a... Read More

Do You Want Your Own Fully Programmable ERP? - Part 2

In the first article we mentioned the main characteristics that... Read More

How to Compete with the Big Guns?!

Many small business startups fail within the first 2 years... Read More

The Key to Creating Total System Empowerment

In this paper, I will:1. provide a framework for creating... Read More

How to Start Home Based Travel Businesses

Home based travel businesses are no longer the wave of... Read More

tub to shower remodel wauconda acadian remodeling grayslake ...