Are you working harder than ever, but still worried about working capital for your small business? If yes, you’re probably spending a lot of time trying to track down payments. It’s a real headache to contact your clients who haven’t paid their invoices.
Ideas, Tips and Insight on “all-things-business” from the financial experts at Capital Solutions Bancorp.
I love to read especially in the summer by the pool. When I finished “The Girl on the Train,” I let my friends know that if they wanted another good read like “Gone Girl” or with more likeable characters to give it a go. It turned out that many friends were looking for more good reads like “Gone Girl.” Three suggestions came in and I ended up reading two, both great reads.
That’s the power of referrals for you.
Let’s face it, you can be profitable and broke. (Have you ever tried to make payroll or pay vendors with so-called profits?)
You don’t want to get into a position of paying your invoices late. This is a situation that needs to be remedied ASAP.
No matter the current economic climate, firing a client tightens your business and sharpens its focus. It can also revitalize your energy as you let go of the stress of dealing with the client. You’ll be happier. You may even replace the problem client with two new ones as the fired client won’t drain your energy anymore.
I’ve fired a client.
No, we weren’t having problems.
In fact, I quite liked the owner.
So why would I fire his small business?
According to the SBA, a company’s chances of survival is about 50 percent in the first five years. Babson University’s 2013 Global Entrepreneurship Monitor report says the top two reasons for going out of business are problems getting financing and business isn’t profitable. These two affected more than half of the businesses.
Are your customers satisfied with your company? Or are they very happy with your company? There is a difference here. Satisfied isn’t enough to hold on to them. They can easily switch if they notice problems with the product or service, or something better comes along.
How much should you spend to get new customers? When a deal or promotion opportunity comes your way that brings in new clients and grow your business, how do you figure out whether the deal will pay off?
Your gut feeling may have come through for you in the past. You let it dictate how much is just right, too much, or too little. What you think costs too much may end up bringing in more customers and profit than you expect.
Without knowing a client’s lifelong value, it’ll be impossible to determine whether an acquisition cost is too high or too low.
Yes, the above is a picture of a cockpit in a plane.
Are you about to fly? If so, bookmark this page and return after you’ve safely landed.
On land now? No more flying? OK, read on.
“Cash is king.” No doubt every small business owner has heard that. That’s because a small business can’t survive without cash flow. All the great talent means zilch if you can’t pay them and your bills.
But what brings in the cash? Your accounts receivable, or A/R. Accounts receivable is an accounting term for what your clients owe you for the products or services you delivered. Your invoices are a generated accounts receivable. Until you submit your invoices to clients, you won’t get paid.