How to find hidden cash in your company – Part 1
Businesses grow, however they often start off small and develop into much larger enterprises. What we find is that these businesses need money in order to expand, develop projects, and improve their marketing.
To find hidden cash in your company it starts with the journey of expansion businesses take and how it can lose sight of how to manage and maximise money, particularly money owed by customers.
By failing to manage your company’s money effectively you should consider this as robbing from yourself!
In a series of 3 separate articles on helping you to find hidden cash in your company here’s our first quick insight into how you can improve this situation and to generate more cash to improve your profit.
Customers who owe you money
Focus on customers paying you on time. Many small to medium sized businesses don’t have a discipline around collecting money because the owner is fearful of upsetting customers. Look at it the other way round – this is an important customer service discipline, an opportunity to touch base with them and let them know you care, as well as ensuring the money is coming in on time.
Actions you can take to make sure that clients pay up promptly:
- Phone them a week after you sent an invoice and ask them if everything is OK and check when the invoice will be paid. If there are any queries you can deal with them at that point.
- Send statements every moth to customers. Some companies have a policy that they won’t pay invoices unless they have received a statement or call. You can make this part of your customer service ethos – keep in touch with them and ensure the business relationship is going smoothly.
- If an invoice is being delayed ring them and discuss the issue. Do not just leave it and hope. The longer it gets left, the greater the likelihood of it not being paid.
- Escalate customers who make false promises. They aren’t a customer if they don’t pay you. We recommend that you are persistent in chasing unpaid bills. This usually pays off in the end, and is better than having to contemplate legal action.
Our next 2 articles will expand further on how to find hidden cash in your company, and in the meantime take a look at how and why we focus in helping business owners to get their cash working for them so they can reach their objectives – not to mention sleep better!
Contact our team to find out more or call us 01252 820002.