Are you struggling to get your clients to pay you on time?
Not getting paid on time may result in many good businesses going broke because they are unable to maintain their cash flow.
If you want your clients to pay in a timely manner, you need to have the right processes in place to collect your money. And if it’s not your forte, you need to get someone else from your team to do it.
In the video below, Scott Trevethan and Paul Dobson explain why this is so important:
One way that you can ensure that payments happen on time is to align your team with that mission.
As Brett Kelly explains in the clip below, explaining the importance of collecting owed money to your team can really help your bottom line.
I really hope this helps change your mindset, make sure you follow us on social media to see even more great clips like these.
Get Your Clients to Pay You On Time
Paul Dobson: Who owes you money? And how are you chasing that money? We all have debtors, most of us in our businesses, as we offer services or products on credit. And believe it or not, a lot of small business owners fail to have proper processes in place to collect that money. That has a major impact on how you run the business.
It adds to the stress levels of running the business. It means you’re often up at night worrying about how am I going to pay those bills, the tax office comes along, the banks come along and you’ve got money owing to you. You’ve got to have proper processes in place.
If it’s not your forte, get someone else to do it for you. You shouldn’t be the one doing the sales, doing the data collection, running the business, doing the marketing, get someone else to do it for you.
Cash flow is king. If your cash flow is tight because money is being owed to you and you’re not chasing it properly, fix it.
Scott Trevethan: Absolutely. And guys, don’t be the bankers for your customers. You don’t want to be the easiest source of money, the easiest source of credit for the people that you do business with. So make sure that you get paid when you’re supposed to get paid. That’s what you’re in business for. Not to support other people.
Securing Revenue Is Everybody’s Job
And then number seven, I think, overwhelmingly, this is absolutely critical. This is some of our team at Kelly+Partners. This has got to be an all person responsibility. Every single person in your company needs to understand how critical it is that you guys are collecting your cash and that you’re collecting it on time.
Because if you don’t actually make that happen, then what’s going to happen is you’re going to have a situation quite quickly, where somebody’s going to just not collect your money, and they’re going to say to you, “Sorry, I didn’t actually realize it was that important. I didn’t know it was my job.”
Securing the cash in your business is everyone’s job. If people are not aligned to collecting the money for the business, then make sure that you don’t have them in your business because you won’t ultimately be able to pay them and they won’t be very pleased when that happens.
And so explain to your people, “Hey, you get paid every 30 days. I need to make sure we get paid faster than I have to pay you. So if I have to pay you every 30 days, I want to collect my money faster than 30 days.”
You must personalize the message. You must make sure that your people personally feel how important it is to get paid.
I make it very clear. I’ve always said, “Listen, if our customers don’t pay the business, then I will not be able to pay you. So if you want to get paid, you need to help me with that exercise.”