It’s Your Money
BusinessI recently met with an owner of a 10 year old business; this person is a sales genius, having grown sales to nearly $2 million. He’s built strong customer relationships, has an excellent reputation in the community and has no problem finding new business. All of this is great, except for one thing. In spite of the fact that sales have grown at a very healthy rate, profits haven’t.
His challenge is the same as so many other entrepreneurs. He’s got a great product; he gives great customer service and he knows many of his customers on a personal basis. He has a system for invoicing, so the bills go out on time. But a percentage of customers are not paying on time – some of them, not for a long time.
He’s making two serious mistakes. First, he doesn’t want to upset his customer relationships by bugging them about paying. He figures if he does a great job, people will pay. Some of those outstanding invoices have been unpaid for 3 to 6 months. That is a lot of his money [Find out more ...]