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Don’t Let Your Revenue Flow Freeze in February

February 25, 2021
Thursday Thoughts, Revenue Flow Inspiration for Women Entrepreneurs, Female Business Owners, Small Businesses
cashflow

The flow of revenue for a small business is a make or break situation much like the necessity for free-flowing water in frozen pipes. Sometimes water falls out easily and abundantly doing and other times water turns to ice creating backups, dams, and lack of this vital resource.

Sometimes trying to collect on receivables in a small business in the middle of winter, especially during a pandemic, can feel the same way as water flow. Most times clients pay on time and the flow of cash is steady and plentiful; but other times for unknown reasons reliable customers stop paying on time which causes a drought of different sorts for small business owners.

Here are three tips about the most challenging aspects of cash flow – invoicing – to help you if you face this issue as a small business owner:

* Invoicing isn’t always straightforward. The basics are simple if you have an invoicing system in place, but other commitments and interruptions can sometimes get in the way. It is essential to get invoices out on time when you are busy. This is a common problem small business owners and especially solo-entrepreneurs face. When your business is thriving and you are busy working to make money, it can be hard to stop and take time to send invoices. It is essential for a healthy cash flow to make invoicing a regular part of your work week.

* Following up on overdue invoices is essential for getting them paid. Although time is always at a premium in a busy small business, you have to commit to following up on outstanding invoices once a week. Sometimes it might take 3 to 5 pieces of communication before someone pays an invoice. Use both phone and email communication alternatively until you are paid.

* If your customers ask for more time to pay their bill, ask them to commit to paying 50% today and give them another 2 weeks to pay the other 50% if you can wait that long. You might have to do this if you are working with loyal customers. Make sure if you give them more time to pay the second half of the bill you automatically followup with them when the second payment is due.

Invoicing is just one part of business that isn’t always a top priority for a solo entrepreneur but since cash flow is the life blood of a business, invoicing and collection of revenue is vital for corporate success.

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