Is Your Business Collecting IOU’s And More Debt?

Posted by nialldevitt under Finance
From http://tweakyourbiz.com 294 days ago
Made Hot by: BIZantium on August 1, 2012 2:48 am

One of the biggest challenges that a small business faces is staying up to speed on collections. You can have the greatest SEO program in place, a stellar social media campaign and the best sales team around, still you are finding your business in a hole. If a large number of clients owe you money, you can quickly end up being in the red when checking your financial books.

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Written by nialldevitt
293 days ago

This is somewhat of a double edged sword. While cashflow is a big issue for small business on one side, It's also important not to lose sight of the relationship and working with customers/suppliers - who of course are very often also small businesses themselves. For me, a big solution is in setting upfront terms that are realistic for both parties, very often I see businesses attempting to enforce terms that are just not realistic in this environment and that ultimately hurts rather than helps in the long-term.

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Written by HeatherStone
292 days ago

It's a difficult balance, Niall. I think ultimately you must learn to identify at risk clients and patterns that might result in not getting paid and then, as much as possible, develop reasonable policies that mitigate that risk.

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Written by HeatherStone
293 days ago

Many businesses, particularly service companies doing billing of clients after the job is completed, discover early on just how important collecting that revenue you're owed truly is. The alternative is spending your most valuable resources, your time and talents, providing a service and never seeing a return on that investment.

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Niall Devitt

Niall Devitt advises organizations how to plan, design and implement social strategies that generate real business returns. In 2009, Niall co-founded TweakYourBiz.com …