When you’ve delivered your product or service, your aim should be to get paid as fast as possible.
Same day if you can swing it.
If not, then faster than your agreed payment terms if possible.
But no later than the last day.
Because this gap between supplying the product or service and getting the money is where your business is at its most vulnerable.
A lot of people discovered that pretty quickly after COVID hit.
Money that could have already been collected and under normal circumstances would definitely be on its way, suddenly dried up.
And then those reserves that had enabled such a relaxed approach to collection, started drying up just as fast.
In fact, over the last couple of years, the amount of money owed to businesses has more than doubled.
If you are owed money, then that pretty much makes you a bank.
And banking is only the most profitable business on the planet if you are an actual bank!
So, don’t be a bank.
Prioritize collecting cash.
Start by tasking someone to get on top of how much money is outstanding ON A DAILY BASIS.
And ensure you are included in reporting.
Because if you don’t know what that number is …
Then you are one of the 67% of business people that – almost unbelievably – say they aren’t really sure how much money is owed to them by their customers!
