If you feel as though your business income isn’t quite what it should be, then you need to make a change here. If you don’t, then you may find that your business ends up going under. One way to work around this would be for you to take steps now to ensure that you keep your start-up afloat, even when things get tough.
This is a contributed post. Please refer to my disclosure for more information.
Hire An Accountant
The first thing you need to do is hire a business accountant. When you hire someone to handle the accounting side of things for you, you can count on them to tell you what income you have and how much you have going out in terms of general expenses. Without an accountant, you may be tempted to manage the financial side of things yourself. This is a major mistake because you might overlook certain expenses, or make monumental errors. Over time, these errors can greatly impact your business, which is the last thing you need.
Stop Late-Paying Customers
Another thing you need to do is stop customers from paying late. This is easier said than done because people may have a huge range of excuses when it comes to paying late. Of course, sometimes it’s understandable but if you find that it is happening more often than it should be, then this is an indicator that you need to change your policies. Have a process in place if someone does pay late, and implement repercussions. Charging interest on their purchase is a good thing to do here, as it means your business won’t be left struggling in the event of a late payer.
Chase Customers
If you already have customers who have not paid, then you need to chase them. Make sure that your company gets the money owed by hiring a debt recovery service, or seeking legal action. If customers know that they can pay late without consequence, then this will incentivise them to do it over and over. If you want to avoid customers being treated unfairly then one thing you can do is adopt a methodical process so that everyone goes through the same system when they owe you money.
Use Software
Another thing you need to do is adopt software. The great thing about software is that it helps you to see how much you have coming in and from what avenues. This helps you to prioritize the products that are selling well while also limiting stock for products that don’t do too well. If you can use software, then you may also find it easier to track deliveries or payments for vendors. Little things like this can make your life much easier, so make sure that you give some thought to this, as the payoff can be substantial.
Of course, when running a business, it’s always wise for you to scale, and if you have a solid income, then this becomes easier. Why not see if you can make a positive change to the way you manage your income today?
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