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Invoice on time and clearly communicate credit terms at the start of any transaction. You might want to consider allowing customers to pay online as it is fast and convenient. Most online sales are paid for with a credit or debit card and will require special arrangements to be made such as setting up an account with a merchant bank or working with a payment-processing company. The most important thing about using the internet for financial transactions is security, so make sure payments are safe.
Stay ahead of trends
Read business and trade press regularly to keep abreast of current and future trends and take advantage of the exponential growth of blogs such as http://cashspeak.blogspot.com, which offers advice to entrepreneurs. Regulation and laws may change so consider retaining the services of a specialist public affairs firm who can monitor issues for you. Also think about credit trends. Intrum Justitia conducts bi-annual research which captures and compares international trends in payment behaviour, including Scotland-specific data. Download the latest report at http://www.europeanpayment.com
Form Alliances
Grow your market-share by forming partnerships or alliances with companies targeting the same customer base as you. The practical form this alliance takes can range from some simple database sharing and marketing activity, to joint product development or even a merger. Before approaching a company, consider the tangible benefits to their business as well as your own. You should also think about any negative implications of the partnership – no matter how informal. Are there some customers or other companies who you will no longer be able to sell to? And if your business proposition is similar – could they integrate your product or service into their own?
Ask for help
If you do run into financial trouble, ask for help before it reaches a crisis and don’t keep your bank or other financers in the dark. If you’re cash flow is significantly affected by outstanding payments, you might want to consider outsourcing collection of the debt. Working with a reputable credit management services company such as Intrum Justitia will ensure that if debt does build up, a combination of sophisticated debtor profiling (which personalises the debt recovery process) and the highest professional standards, will be employed to recover debt effectively and fairly. Don’t forget to think long-term in this situation. Bankruptcy might seem like the easiest way out but it will negatively impact future business dealings and your credit rating for years to come.
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