Then you look at your desk, the texts, emails, phone messages. Everything is URGENT. The final blow on your day comes when your associate walks in “I need to speak with you NOW!”
Ok, you’re face to face, you say, “Sure.” The next words change everything. “We can’t make payroll this Friday.” Anyone ever hear that?
Your plans for a productive day just went out the window. You set aside your new ideas and start plowing through the invoices to call for payments. Most of your invoices are not late. Customer terms are 30-45 days. So, how do you call on these, except to ask that payment be accelerated? You feel vulnerable and defensive. And the chances are you get voice mail. If you speak with a live person, you’re told that the next checks will be cut on Friday (if you’re lucky) and will go out on Monday. Doesn’t help the current problem.
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This scenario is happening more and more as business picks up (and it is picking up!)
Companies need their money for bills, payroll, insurance, rent-just to name a few. Customers are taking longer to pay, and extending their terms. If you don’t like it or can’t work with their new terms, they find someone else to fill your slot. It’s not a strong position for the vendor. It’s a very competitive world.
Cash Management takes a toll on most business owners. Every business needs a steady predictable flow of money coming in.
Your time is better spent on new products, new customers, and marketing. That’s what you do best. There is no reason to spend your time on the phone dialing for dollars, or stressing out over cash flow problems. Running late payments on your bills can jeopardize your personal credit and your company credit.
You can’t do it all. Multitasking has been proven to be unproductive, as well as frustrating.
Business and opportunities are improving in almost every industry. You need to be prepared and focus on your products and marketing, not chasing customer payments.
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