Improve Cash Flow…Call Your Clients

Improve Cash FlowCall Your Clients

Improve Cash FlowCall Your Clients

Since only about 3.5% of American families are considered wealthy (net worth of $1 million or more)for at least 96.5% of us, cash flow is life We all worry about bills (even some of that 3.5% probably does this), paying on time, paychecks, etc. and your small business is no different. It needs this life blood (this flow of cash) consistently for any hope of success. If you bill it, but don't collect it, you never had it.

However, our culture has taught most of us not to talk about money overtly. We speak to our wealth or values by what house we own, our car we drive, clothes we wear, etc., but never by, unless we are hopelessly rude, asking or telling about it. For a small business, this concept is death. From time to time you must talk to your customers about money. Every business has ebbs and flows of boom and bust cycles where cash is plentiful or cash is tight. The small business entrepreneur who anticipates and discusses these concepts with his clients are ahead of the game, have better cash flow, and have a greater chance for success. Try these tips to improve your prospects:

Call quickly If a receivable is a week late. CALL! Aging accounts lose value, the older the account the less value, and there is much less likelihood of ever receiving it.

Reason for Calling Your primary reason for calling is to get paid, however you have other information you really need and want. Make your call with the mentality of "checking" on your client, not just "Where's my money". "Where's my money" can be effective, but short sighted, also. You not only need to see if payment is coming for your receivable, but also need to know if you can find a bigger/deeper business issue your client is experiencing such as poor sales, his clients aren't paying, other business disaster/interruption, etc. that indicate other issues you need to address in this situation. Do you want to extend further services, credit, etc.you don't want to have to call on all his accounts for the entirety of your relationship.

Value Added Benefit Your call, if accompanied by care and concern for your client (which you should have since they pay your bills), have much greater benefit beyond just getting paid for what you have done. You have become a business partner, communicating that his business is important to you/your business in a concrete way that you recognize and you want both of you to succeed.

So, take the time and call. View the call as an opportunity for gaining payment and making a friend or business partner, not just a call as a bill collector.

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