Cash flow is the life blood of any company and as a small business owner you should be prioritising your payment process from day dot. Believe it or not, there is an art to getting paid faster – here’s a 3-step method to get started today…
1. Start the payment conversation from day 1
Communication is key when it comes payment procedures, and we encourage everyone to start any conversation around payment from the beginning. Bake your payment terms into your onboarding process ensuring that you have clear terms before sign-up. Build a clear, easy-to-use document that details the terms and conditions, so everyone is clear on expectation.
2. Invoice upfront and consider instalments and deposits
Securing a deposit at the beginning of the work, and remainder on completion is an excellent way to manage cash flow. Invoicing upfront – with a forward dated payment date may feel counter-intuitive but will ultimately help you in the long-run. It is one less thing to have to do at the end and again bakes payment into the process.
3. Complete and automate
Once the work is completed if you haven’t invoiced at the beginning of the work make sure you send your invoice swiftly on completion. It is usually at this stage that businesses only start to think about invoicing and having payment conversations – which often causes delays and blocks in the process. As you can see there are two opportunities before this that should be capitalised on! Once the invoice and work are done use automation and tech like Xero to your advantage. You can schedule and issue your invoice at the click of a button, and send automated reminders to secure the payment if the date is missed.
In conclusion, we know talking about money and payment especially as a new business owner can be awkward but by harnessing these three steps you can really get ahead and start as you mean to go on.
At Satori we will help you get the right tech in place, we connect and automate that tech, and we can help get finance options for your customers – all of which means money into your bank faster. If you want to start your journey to business enlightenment book a discovery call today.