Editor’s Note: This is a sponsored post.
In the United States, small businesses comprise 99% of all businesses and employ 60 million
Lack of access to capital is one of the leading reasons why small businesses fail. In fact, one in three small business owners says that access to capital is the most challenging business problems they face.
Given how critical it is for small business owners to successfully raise capital, produce consistent income from quarter-to-quarter, and manage expenses daily, becoming an effective money manager—in addition to developing capabilities in sales, marketing, and operations—is critical to
Be Smart About Your Deductions
If your business receives payments from customers on time, but cash flow remains a consistent issue, the cause could be the amount you pay in quarterly taxes. While no one is exempt from paying taxes, the amount you owe each quarter depends on the deductions you are able to claim. Without enough deductions, you will remain in a higher tax bracket and thus owe more. If you’re not certain that you can claim an expense, consult a certified tax specialist today and start saving money tomorrow.
Offer Structured Payment Plans
No matter how great a company’s cash flow is, it pays to offer customers options when faced with a large scope of work, and an even larger price tag. Business runs on trust, so don’t be afraid to trust your customer to make
When you’re doing a large job, consider offering your customer the option to make a downpayment and then more payments over time. Many companies find out from past experiences that allowing their customers to make smaller monthly payments is almost a guarantee on their return. It also leads to more business, as people like to do business with other people who treat them well.
Establish Personal Relationships
A survey released by PaySimple a few years ago found that 80% of small businesses struggle with receiving payments past their due dates. One of the best ways to get customers to pay your invoices on time is to establish a personal relationship with the purchasing officer and the accounts receivable manager. These are people to know on a first name basis, people to send holiday cards to, and so on.
Another effective approach is to set an automated reminder email that notifies your contacts when a payment is late. When these emails first arrive, it may upset the customer, or jar them awake. It’s a good idea to follow up with a personal email that clearly states how and why the automated emails are sent out.
Take Your Contracts Seriously
It’s hard to run a profitable business of any shape or size. It’s even harder
Make It Easy To Pay
Small business owners need to get paid. The faster the better. Customers, for their part, want the ability to pay their bills online. By enabling customers to pay instantly through an online payment platform like PayPal or Stripe, you help to make it more convenient for customers to pay, and pay today. Online invoicing and payment platforms also allow customers who may be waiting on funds themselves to pay using a credit card.