How to keep customers happy with your small business
If you are a small business owner then you need to realize that your customers are the lifeblood of your business no matter the size or type of company that you run. However, for small businesses this fact is even more crucial. How you treat your customers will in large part determine if your small business stays around long enough to grow and develop. Small business owners need to understand that it is crucial to establish a relationship with their customers. There are many different reasons why this is important.
How to determine if your customer is credit-worthy
One of the major steps in managing your business finances is determining your credit policy. Whether extended to new or existing customers, you need to have a credit policy in place. It is important to understand that the simplest customer credit policy has two basic points:
Invoicing and payment terms
The key to developing a healthy cash flow depends on your ability to implement a good invoicing system. You must gather the funds from your customers in a timely manner in order to sustain your cash flow and to avoid losing money as you wait on your customers to pay you for the products they have already ordered. When you implement a strong invoicing and payment term policy, your customers will easily be able to see what is expected of them. This way they will pay their invoices on time so you are losing money from your cash flow. This article will help you implement the right type of payment terms and develop an invoicing method.
Dealing with the late payment
Late payments from your customers can ruin your company. When you offer payment terms to customers, you are basically offering them a line of credit from your company. When you are borrowing money from your cash reserves to pay for products that your customers have purchased, it freezes your cash flow. You won't have the money you need to pay for your raw goods and other costs.
Alternative payment terms for customers
The recession hit everyone and some people were more impacted by it than others. Instead of asking your customers to pay for their invoices up front, you may want to look into some alternative payment terms. This offers your customers a little more flexibility, which helps to build stronger relationships with your customers. It will also help you build a stronger reputation in your industry, allowing you to attract new customers.
Writing better collection letters
Do you have customers that just flat out refuse to pay their bills? If you are tired of dealing with the customers that don't like to pay on time, writing credible collection letters can help you force these customers to actually pay their bills. There is some comforting news for you, a lot of small business owners do not know how to write collection letters as they aren't sure what to include in the letter. A good letter must include a few important details that will get the customers to pay and then convince them to keep ordering from your company in the future.
Surefire tips to make sure your customers will pay on time
Tired of waiting 60-90 days for your customers to make their payments? If you are tired of waiting, there are some things you can do to make sure your customers are paying on time.
Should you offer credit to consumers?
A common marketing tactic to get customers to purchase more products is to offer consumers credit cards. Credit is a great way to help your customers pay for your products and it also provides you with the opportunity to earn more money because you can charge interest. Credit cards are also a wonderful way to keep your customers loyal to your company.
Taking your business public, pros and cons
Taking your business public is a big decision. It is an expensive endeavor to take your business public, even for the big companies. Taking your business public is also a time consuming process both before and after the company has gone public. You will lose some control of the company since you now have to keep your investors involved with some of the decisions. There are pros and cons involved with taking your business public, here are a few things to consider:
Once you go from being a private company to a public company, you will sell securities to the public. This means that your close friends and family members will not have control over the operational status. Taking your business public will help to raise your company's capital, which is always enticing.
Continue reading "Taking your business public, pros and cons"Getting customers to pay on a timely basis
For many businesses, getting their customers to pay on a timely basis can be a bit of a challenge. Fortunately there are a few options available to help you make your customers pay faster.
Some businesses have added a clause to their invoicing methods and inform the customer up front of a penalty for late payments or a reward for timely payments. The early payment discount plan is that you will knock of a certain portion of the total amount due if you receive payment within 5-10 days after the date of the invoice.
Continue reading "Getting customers to pay on a timely basis"30 PR tips
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How to check the credit status of your customers
For banks or business, customers are a crucial part. Without customers there is not business. It would be a one sided liability. You would buy a bunch of stuff you do not need and through a lot of money away. But because customers need things and consume a lot of things these days, businesses stay in business pretty well.
Some customers are ordinary people that go about day-to-day and buy things like groceries. Some customers are businesses that are looking for supplies in bulk. Some customers are businesses looking for loans. A customer is simply a person who comes to your business and buys your products. They are a customer to your store.
Continue reading "How to check the credit status of your customers"How can I get my customers to pay on a more timely basis
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What to do when customers wont pay what is owed
Even if you run a really good business and do really great work, you will occasionally find a customer that is never satisfied with what you do.Generally these customers will still pay what they owe you, despite their dissatisfaction. However, what do you do when customers won't pay what is owed?What are the next steps to take?Here are some things that you can do when customers won't pay what is owed:
What to do when a client's check bounces
It can be very frustrating when a customer writes a bad check and then they avoid contact with you. Bad checks don't happen all the time, but there is the occasional client who writes a check that bounces. So, what do you do when a client's check bounces?
There are a couple of things that you can do when a client's check bounces
Run the check again.
Run the check through the bank a second time. It is ok to double check to make sure that the transaction was done properly. Some call the bank first before making the second deposit attempt. If the check bounces again, it's time for step 2.