Often, small business owners are uncomfortable about asking to be paid, yet the top way to improve cashflow is to invoice PROMPTLY! If you run a business, (especially service businesses) and you don’t invoice promptly as well as collect payment promptly (which cause cash crisis in the first place), then consider the following –
Consequences for your cashflow:
- Clients can quickly forget what they owe you.
- They are less likely to remember how much they loved your work and pay you promptly.
- They may conclude that you do not expect quick payment and will take their time in sending in their money.
Some ACTION solutions:
- Where possible, issue invoices at the time services are delivered.
- Send your invoice by email to speed the process.
- If you can’t issue immediately, 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 it like clockwork – it will help to even out your cashflow.
Take-away message –
Create the habit – invoice quickly and often.
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