- Consider running credit checks on your clients through any number of third party solutions, this can provide a credit worthiness score to use in your discussions.
- Look at your payment terms. With the current capabilities in online payment platforms, there is no reason why payment cannot be paid on work completion, even better upfront, rather than 90 to in some cases 180 days payment terms. Waiting to be paid 90 days or more after work completion has all the hallmarks of cash flow problems.
- Make sure what you charge is a true value for what is being delivered. There are several examples of businesses not increasing their prices even after 3 years or more. .
- Naturally with all services and competitive markets, consider price elasticity when testing increasing what you charge customers.
With the wealth of business advise available, it can seem over-whelming and complex to understand for business owners, however our three Simple Business Rules is a good start: First Rule: Make sure customers pay you on time and it’s true value It is estimated 4 out of 5 small businesses are owed money from customers, amplified to approximately £6.9bn owed across the UK. This figure is unbelievable but when you click down into the detail you can see in parts where it can be prevented.