Entrepreneurs who believe their business is poised for extreme growth need to get money from their sales in their pockets to properly conduct cash flow forecasting over the course of the next six months to a year. With a steady stream of cash flow, entrepreneurs can continue investing in new products and paying off their loans, which will all help them expand their operations. By making a few easy adjustments, entrepreneurs can get their payments more quickly and get the cash flow they need. Below are a few improvements entrepreneurs can make to get cash in their hands in a time-efficient way.
Inform clients the amount of days they have to pay
One small trick that can make invoices easier to interpret is by using the word "days" instead of "net." Some firm owners aren't the most savvy business people, and may not completely understand what the "net 30" means on their invoices. Simply stating "your business has this many days to pay" can make collecting payments much easier. Late payments are one of the biggest problems that stand in the way of entrepreneurs, making financial forecasting even more difficult.
Don't use the term 'upon receipt'
Sometimes cutting to the point can be the most effective solution for entrepreneurs when it comes to sending out invoices to their client base. Some customers can associate the term "upon receipt" on their invoices with whenever it is most convenient to them. A smarter strategy for entrepreneurs who want to get paid faster would be stating the exact number of days clients have to pay before they are charged with a late payment fee. Simply writing "21 days" or whatever the policy for payments is on their invoices, entrepreneurs will get their money more quickly from all of their clients. In some instances, with customers who are more trustworthy than others, entrepreneurs can request immediate payments, which can speed up processes for both the company and their clients.
Remember to say 'please' and 'thank you'
Business professionals who fail to use manners when communicating with their client base may see that they are struggling to retain customers. Entrepreneurs can use this as a lesson to always say "please" and "thank you" when they send out invoices. Politeness not only can help entrepreneurs get paid faster, but they can also make sure businesses keep their customers around because of their positive experience with a company. Inc. magazine stated entrepreneurs who are polite can increase the percentage of invoices that are paid by more than 5 percent.
var addthis_config = {services_compact: ‘facebook,twitter,linkedin’}