Are you standing in the way of your own success?
So, you’ve been in business a number of years and things are going well, you have a good customer base and a great product or service. So why is the bank account always just above empty. For most SME’s the answer is a simple one, customers take too long to pay us. The question is, is that the fault of your customers or the culture within your business?
Asking for money is not an easy thing to do for most people and people being people will always avoid doing the things they don’t like to do. There will always be something more important to do than pick up the phone and chase the invoices, but without cash flow, sooner or later the company will run into problems no matter how good your product or service.
According to a report by the ABC on the 30th January 2017, unpaid customer bills are costing the Australian economy $76 Billion and crippling small businesses, Fintech financier The Invoice Market, estimated that 2 million small businesses are “drowning” in unpaid bills and are constantly owed an average of $38,000. Are you one of the 2 million? And what can you do about it.
The report goes on to mention that “research shows that, on multiple occasions, small business owners are having to ask as many as five times for their outstanding invoice to be paid. Which begs the question how good are you or your staff members at actually asking for payment. In another article Healthy Business Finances founder Stacey Price, say “I think people feel guilty for chasing money, even if they’ve done the work,”.
At the Australian Institute of Soft Skills Training (AISS Training), we feel it is this fear that needs to be addressed by businesses, staff need to attend Credit Control / Debt Collection courses creating a culture where accounts receivable is part of the Customer Service culture, not making account collection a scary, separate issue, but rather part of the overall customer contact, our Credit Control course does.
Soft skills and the correct attitude are at the very heart of our accounts receivable training course, without exceptional communication skills and training for small businesses, overdue accounts will continue to be a significant problem for many businesses both small and large.
Having a customer focused culture with assertive payment arrangements will not drive customers away, in fact it will do the opposite, customers will know that you are focused on the overall relationship and see you as giving excellent customer service.
3 easy steps to improve your cashflow:
- Make Credit Control apart of Customer Service
- Create harmony between Accounts Receivable and Sales
- Train your Accounts Receivable person