Category: News Blog

10 for FREE

Credit Control is Not Sexy (But it is Important)

Credit control starts long before an invoice is due or overdue. It starts when you first speak to the customer.

What you have to do is ensure that you have good invoicing and credit control procedures in place to eliminate the reasons some people have to delay and/or avoid payment.

Factors which can help customers pay in good time include;

1. Make payment terms clear from the start when the customer signs up to avoid any misunderstanding later.

2. Make payment terms clear on each invoice.

3. Issue an invoice as soon as possible after the purchase is made or the task is completed. Some businesses don’t raise their invoices until the end of the week or even the end of the month. In most cases, the sooner the customer has the invoice the quicker the money is in your bank account.

4. Check all the details are correct on the invoice before it’s sent out. Delays caused by reissuing an invoice can lead to delays in the customer paying.

5. Credit period shown clearly on each invoice.

6. Credit period shown clearly on each statement. Make sure it is the same period as agreed with the customer at the outset.

7. Send statements promptly. Some customers don’t pay until they receive a statement, despite what you have agreed previously or it says on your invoices.

8. Send the statement earlier. Some businesses pay their invoices once or twice each month, if you send your statement a few days earlier than you are currently doing you could make an earlier payment run.

9. Have bank details clearly shown on each invoice. More and more customers are paying using online banking rather than sending a cheque. Ensure your bank account details are clear and correct.

10. Have bank details clearly shown on each statement.

Keep learning, keep improving

The above is from my Helpsheet ’21 Ways to Improve Your Credit Control’ that has developed and evolved over the years from the original ’10 Ways to Improve Your Business Today’.

Credit control, yawn yawn.

To all those who have read this far, well done. I know, credit control is not sexy or very interesting. In fact, it can be a thankless task sometimes, chasing people for money. No-one likes doing it. But if you don’t, customers will quickly stop paying, then your business will run out of cash, and you don’t need me to tell you what happens next. So stay on top of your credit control. Either do it yourself, or get someone you trust to do it properly to do it for you. Just make sure you do it.

Competitive advantage, work smarter

Some businesses think they don’t need to do it, and soon run into difficulties. Some of them will be your competitors. This is your opportunity. Be smarter. Be better.

Good luck with your business.

Thanks for reading

Gordon

Customers who don’t pay are not customers

Parasite – definition: 1. An animal or plant that lives in or on another (the host) from which it obtains nourishment. 2. A person who habitually lives at the expense of others; a sponger.

Customers/clients who don’t pay you are not customers/clients. They are parasites. They will use you until you finally ask for payment, then they will move on to their next victim, leaving you with bad debts.

They have very likely done the same thing to other small businesses just like you.

You know who I’m talking about.

They, likely, squeezed you to get the lowest price. Then didn’t pay you.

Also, they think nothing of contacting you day or night, evenings or weekends. And want their work to be given priority and completed straight away.

Chase those debts

So, chase your debts and get the cash in. You did the work. You earned the income. Don’t be fobbed off with excuses.

Focus

Give them a final deadline then, if they don’t pay, pass the debt to a professional to recover it. They will charge a commission but you will likely receive more than you would have otherwise.

Then you can focus on your good customers/clients. The ones who do pay you.

Your time is precious. Spend it wisely

You don’t have time to work for customers/clients who don’t pay.
You can’t afford to work for customers/clients who don’t pay.

If you have too many customers/clients who don’t pay, you will eventually run out of cash, and you won’t understand it as you have never been busier.

Watch for the tricks

Unfortunately, the people who don’t pay, often, know all the tricks to delay and/or avoid paying.

eg.
There was something wrong with the job/order
That wasn’t the price that was agreed
Those weren’t the payment terms agreed
Etc, etc

Some of this, no doubt, will be familiar to you.

Make sure your terms and conditions are clearly explained and agreed from the outset, before you start any work for a new customer/client.

It won’t stop all the spongers, but it could well help you identify the ones who are, sooner rather than later.

Good luck with your business.

Thanks for reading

Gordon

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Good Strategy Will Get You There

10 Ways to Increase Your Sales

1.  Be better – improve quality of product

2.  Be cheaper – provide better value for money

3.  Be faster – improve delivery time

4.  Be nicer – improve your customer service

5.  Market niche – focus on small part of market

6.  Use the 80 / 20 rule – which products or customers provide the most sales?

7.  Make ordering and buying easier – less form filling

8.  More promotion – raise your profile

9.  Educate your customers – benefit of product

10. Communicate with your customers – new and improved products

The above is from my Helpsheet ’50 Ways to Increase Your Sales’ that has developed and evolved over the years from the original ’10 Ways to Improve Your Business Today’.

Good luck with your business.

Thanks for reading

Gordon

Turn Business Strategy Into Profit

Good Strategy Will Get You There

Why not use the 5+5 Strategy to get back on track?

Employees – Over the previous 5 years, what did you do well? Make a list.

Over the next 5 years, what do you want to improve? Make a plan.

Customers – Over the previous 5 years, what did you do well? Make a list.
Over the next 5 years, what do you want to improve? Make a plan.

Financials – The 5+5 Financial Review

Take your previous 5 years accounts.
Enter the headline information into a summary.
Review the information; what is good? what would you like to improve?
Enter your information for the next 5 years.
Review the information again; is it reasonable? is it realistic? does it look possible?

Q: Now, how are you going to get there?
A: Make a plan.

5 Steps to Make a Plan

1. Review all the information.
2. Consider all the options.
3. Decide on the best ones.
4. Put the changes in place.
5. Monitor the results, and make adjustments if required.

And keep monitoring results. If you don’t monitor and measure, then you can’t manage, so you won’t improve.

Every business is different and no-one knows your business better than you and your team. Get everyone onboard and ideas flowing. Build back better. Be prepared. Become more resilient. Get back on track. Then, power on.

Good luck with your business.

Thanks for reading

Gordon

BookkeepingPLUS

Rewarding Good Habits and Good Sense

• Success is no accident
• Take control and reap the rewards
• Do the basics, do them well, and keep doing them

Good Habits + Good Sense > Competitive Advantage

• The Basics – The basics are not sexy, many aren’t very exciting. But they are important. Either do them yourself, or get someone you trust to do them. Just make sure they get done.
• Opportunity Knocking – Many business owners neglect the basics. Some will be your competitors. This is your opportunity. Do what they can’t, don’t and/or won’t do.
• Know Your Numbers – If your bookkeeping is complete, why not use it to gain an advantage over your competition?
• Get Organised, Sort Out Your Paperwork – Lost and/or mislaid paperwork costs you time and money. Both are precious. As a business owner, you can’t afford to waste either.
• Regular Bookkeeping – Ensure all income and expenditure is processed and up-to-date. It will help you keep things organised and ensure you have enough cash in the bank. Rule 1 of running a business is never run out of cash. Rule 2 is never forget Rule 1. Who’s not paid you yet? Chase your debts and get the cash in. Don’t be fobbed off with excuses.
• BookkeepingPLUS – Better information leads to better decision-making. Build resilience into your business. This won’t happen overnight, it takes time, but it could help you cope better with future disruptions.
• PLUS What? – A 6 and 9 Month Tax-planning Review. Is there anything you can do to reduce your tax bill before your financial year-end? Think about it before your year-end. Be prepared.
• Prepare Year-end Accounts and Tax Return in Good Time – It will let you know, nice and early, what your tax bill is going to be. You then have plenty time to make sure you have or are putting enough cash aside to pay your tax when it’s due. There is no benefit to you in leaving it until the last minute. That’s when nasty surprises happen.
• Update Your 5 Year Budget Plan – Is there anything in the past year that indicates that the sales, profits, cash figures need amended?

Success is no accident. Take control and reap the rewards. Ensure you get the good quality information you need, when you need it, to help your business survive and prosper. Do the basics. Do them well. Keep doing them. Gain a competitive edge over your competition.

Good luck with your business.

Thanks for reading

Gordon

Turn Business Strategy Into Profit

Competitive Advantage

• Think smarter
• Work smarter
• Gain a competitive edge 

10 Ways to Improve Your Business Today

1. Employees – Consultation and participation. Talk to your team, find out what they really think and what your customers/clients are saying to them. Set up a suggestions scheme, get ideas flowing. Arrange regular meetings which lead to improvements and real change, not just “talking-shops”. Your employees are the eyes and ears of your business. Use them well.
2. Customers – Try to get quick feedback with every sale/invoice/receipt. Think of ways to ask your customers/clients what they think of your current services/products. If customers can see how hard you are working to be a success, most people will want to help. You just have to give them the means to do so. Ask them.
3. Review – Look at the previous 3/5/10 years accounts and prepare a plan for the next 5 years. Write down the headline information; sales, profits, cash, debtors, stock. What do you notice? What issues need to be addressed? Using the previous years’ figures, now enter figures for the next 5 years using the same headings. Do they look realistic?
4. Get Organised – Look at your current procedures. What particular problems are you having? Identify what needs to be improved. Make a plan.
5. Sort Out Your Paperwork – Lost and/or mislaid paperwork costs you time and money. Both are precious. You can’t afford to waste either.
6. Regular Bookkeeping – Ensure all income and expenditure is processed and up-to-date. It will help you keep things organised and to ensure you have enough cash in the bank. Rule 1 of running a business is never run out of cash. Rule 2 is never forget Rule 1.
7. BookkeepingPLUS – Better information leads to better decision-making. Build resilience into your business. This won’t happen overnight, it takes time, but it could help you cope better with future disruptions.
8. 6 and 9 Month Tax-planning Review – If your bookkeeping is complete, why not use it to see if there is anything you can do to reduce your tax bill before your financial year-end? Think about it before your year-end. Be prepared.
9. Prepare Year-end Accounts and Tax Return in Good Time – It will let you know, nice and early, what your tax bill is going to be. You then have plenty time to make sure you have or are putting enough cash aside to pay your tax when it’s due. There is no benefit to you in leaving it until the last minute. That’s when nasty surprises happen.
10. Update Your 5 Year Budget Plan – Is there anything in the past year that indicates that the sales, profits, cash figures need amended?

10 simple things you can make a start on to help make your business better.

Good luck with your business.

Thanks for reading

Gordon

Business Strategy

Strategy Is The Link Between Mission And Profit

• Set goals
• Learn what you need to know
• Think positively 

Implementing A Winning Strategy Involves 4 Key Stages

1. Find the right product or service
2. Establish a reason why customers buy from you, rather than the competition
3. Find your customers
4. Concentrate on providing your customers with your competitive advantage in your chosen area of excellence

With thanks to Richard Dobbins and Barrie Pettman’s book, What Self-Made Millionaires Really Think, Know And Do, for the inspiration of the above. Find a copy, if you can.

Good luck with your business.

Thanks for reading

Gordon