Today's business world is moving faster than ever, and if small business owners don't adjust to the times, they risk getting trampled on by their competition. One process that small business owners can't afford to be slow with is payment processing. Without an accurate account of their available working capital, small business owners may have trouble formulating accurate business projections. Here are a few pieces of advice small business owners can use to make sure they get paid in a timely manner.
Make friends with customers
If small business owners are able to make a personal connection with their clients, they will be more willing to get things going when it comes time to pay for products and services. A few ways small business owners can get closer with their clients are by sending them thank-you notes for purchases, allowing them to sample products and services for free, and developing a friendly relationship with them.
"When they see your invoice come through, you are not just another vendor," Dawn Fotopulos, small business consultant and founder of Bestsmallbizhelp.com, told Entrepreneur.com.
Make invoices a top priority
The more time small business owners allow to elapse to send an invoice after a transaction, the more time they will have to wait before they have money in their pocket. By sending a bill right after a purchase, small business owners will get money from their clients more quickly. The faster they receive the revenue, the more time they'll have to plan future investments.
"You can't believe how slow small business owners are at getting their invoices out," Fotopulos told the website. "And the truth is the client has no obligation until they receive the invoice."
Make sure clients can't question any charges
Clients will be more apt to quickly pay for their products and services when they know of everything they are getting charged for. Clearly defining each charge will help small business owners get their money more quickly, and it will also serve as a customer retention practice, because clients will enjoy working with a business that they trust.
"When that client signs that check, they are excited to sign that check, they know exactly why they are signing that check and they know how much value they have received," Fotopulos told the website.
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