How can you increase your cashflow on blue Monday?
Christmas has been and gone, the decorations put away and everything looks bare and empty. The weather’s cold, drizzly and the mornings are still dark and gloomy.
If you turned on the radio or seen any online news today, you probably know today is Blue Monday; the day in the year when we’re supposed to feel the most down in the dumps.
Instead of feeling blue about it, why not make today the day to Health check your invoicing and credit control processes and make 2018 the year all your invoices get paid on time.
Invoice process health check
It’s not just about invoices. If you want to achieve a healthy cash flow you need to start with looking at the entire customer journey, from the time you have that first conversation with a potential client, to the time the invoice is due and all the bits in between.
Quotes – getting the price right
How do you set your pricing? and what’s the value in your services. Sometimes, people don’t realise What they don’t realise is they may be undervaluing their service because what they’re offering isn’t their time; it’s their knowledge, their expertise and the time they save their customer by taking on that role or job. How much would it have cost your customer if they were to spend the time doing what you’re doing? Do you need to review your pricing?
When was the last time you looked at your terms and conditions?
Your contract with your customer and cash flow are directly connected. A bespoke contract, written for a specific product, service or event will protect you and your business and make sure you get paid on time. Do you use the same set of terms or the same contract wording for every customer? Review your contract for every new product or service
What if a customer cancels?
What do you do if a customer cancels? Have you got a cancellation clause? Have you thought about asking for a time reservation fee? If you include time reservation fee in your contract, you can get paid upfront, look more professional and improve how others view you.
Have you got all the right information on the invoice?
Do you specify clear payment terms on your invoice and in your proposal? Do you raise your invoice as soon as you finished the work? Do you ask for payment upfront? Does the invoice have all the right information the client needs to pay you? Do you state payment terms?
Supposing your payment terms are 14 days. When does the 14 days start? The day you raised the invoice? The day you posted the invoice? The day they received the invoice? The day they processed the invoice onto their system?
Let me help with a health check
If you’d like more help with some of the things I’ve mentioned here or would like a full cash flow and credit control January health check, then please get in touch.
If you ask me to help you with your processes, I’ll make sure your cash flow accelerates. Let’s speed it up together. I’ll help you become confident enough to get paid up front and save time chasing invoices.
And finally, why you shouldn’t believe in Blue Monday
Blue Monday began as a marketing ploy to get people to think about booking a holiday. Now, the same guy who dreamt it up (Dr Cliff Arnall) has started the “StopBlueMonday” campaign, which is associated with an official website to promote tourism in the Canary Islands!