Most small service business owners are uncomfortable about asking to be paid. If you run a business, and you don’t invoice promptly AND collect payment promptly (which might be part of the reason for a cash crisis in the first place), there are many consequences:
- Your clients can quickly forget that they owe you.
- The less likely it is they will remember how much they loved your work and pay you promptly.
- They may also conclude that you do not expect quick payment and will take their time in sending in their money.
Some ACTION solutions:
- If possible, present your invoices at the time services are delivered.
- Send your invoice by email speeds the process up even more.
- If issuing invoices immediately is not practical in your business, be sure to issue your invoices weekly, or at least twice per month on designated days, such as on the 15th and the last day of each month.
- Do this like clockwork – it will help to even out your cash flow over the long haul.
- Create the habit – invoice quickly and invoice often.