Wealth Tip: Five Quick Ways to Boost Cash Flow with Better Billing Systems
Too many businesses struggle with cash flow problems because they have bills to pay but delay collections from clients for 60-90 days. Here are five quick ideas to improve your cash flow by upgrading your collection system.
1) Collect Up Front: Why wait to collect your money? How can you change your business process to get clients and customers to pay before your fulfill your product or service?
2) Collect Immediately Upon Fulfillment: Train your staff to immediately ask for and collect fees upon fulfillment. What systems would you need to implement this? Would you need to retrain your clients so that the expectation is for them to cut you a check or give you a credit card right away? Or better yet, to have a credit card or checking account on file for you to autobill upon fulfillment.
3) Send Out Your Invoice Immediately: If you need to invoice for later payment, don’t wait. Create the billing system so that your front line team invoice DAILY. The longer you wait the harder it is for you to collect.
4) Front Load You’re Accounts Receivables Collection Efforts: Most businesses wait until the A/R are 60-90 days late before stepping up the heat on the collections. This is not smart. Instead, front load the effort. Have a staff person call 3-5 days after sending out the invoice to “follow up” with the client. This is a great time to use a system (read script) to have this person ask for referrals, or upsell/crosssell to more business. This system(s) should make you a lot of money if you do it strategically.
5) Incentivize PRE-Payment: Can you get them to buy a month or quarter or year at a time? What bonus could you give them? What special offer could you make them? Ideally you will find a way to get a percentage of your clients to buy ahead of time in a way that benefits both of you.
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I hope you enjoyed this week’s tips. Again thank you to all of you who joined me in Vegas for the two workshops. It was such a great experience.
My very best to you,
David
P.S. Make sure you get your copy of, The Maui Millionaires, if you haven’t already. Every reader gets a FREE $2,495 bonus pack with the book that they’ll learn about on pages 251-254! Order your copy from Amazon today!
1) Collect Up Front: Why wait to collect your money? How can you change your business process to get clients and customers to pay before your fulfill your product or service?
2) Collect Immediately Upon Fulfillment: Train your staff to immediately ask for and collect fees upon fulfillment. What systems would you need to implement this? Would you need to retrain your clients so that the expectation is for them to cut you a check or give you a credit card right away? Or better yet, to have a credit card or checking account on file for you to autobill upon fulfillment.
3) Send Out Your Invoice Immediately: If you need to invoice for later payment, don’t wait. Create the billing system so that your front line team invoice DAILY. The longer you wait the harder it is for you to collect.
4) Front Load You’re Accounts Receivables Collection Efforts: Most businesses wait until the A/R are 60-90 days late before stepping up the heat on the collections. This is not smart. Instead, front load the effort. Have a staff person call 3-5 days after sending out the invoice to “follow up” with the client. This is a great time to use a system (read script) to have this person ask for referrals, or upsell/crosssell to more business. This system(s) should make you a lot of money if you do it strategically.
5) Incentivize PRE-Payment: Can you get them to buy a month or quarter or year at a time? What bonus could you give them? What special offer could you make them? Ideally you will find a way to get a percentage of your clients to buy ahead of time in a way that benefits both of you.
**********************************************
I hope you enjoyed this week’s tips. Again thank you to all of you who joined me in Vegas for the two workshops. It was such a great experience.
My very best to you,
David
P.S. Make sure you get your copy of, The Maui Millionaires, if you haven’t already. Every reader gets a FREE $2,495 bonus pack with the book that they’ll learn about on pages 251-254! Order your copy from Amazon today!
posted by David Finkel at 12:14 PM
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