Small Business Reaction to Accounts Receivable

You're getting into business and there's a lot of thought going towards the money you'll earn and the profits you'll make. Along the way, you get a wake up call when you begin to do business. Realizing that it isn't a dream and it is in fact very real, the revelation is, you can go out of business while making a profit. How can this be so? It's because there a stoppage of your cash inflows. You realize that any of the following can describe you.

• There's more month than money. 
• 911 stopped the mail but the bills still get through. 
• You just got back in from paying the bills only to find the next set of bills there, on point, ready for payment. 
• THEN you realize - that some people owe you, haven't paid up yet, and every time you talk to them there's a different hard luck story. 

Hmm. 

Your thinking goes through a series of points

• Things rough all around, it'll soon work out, and I'll get paid. 
• Maybe if we look at a payment planning, we can get the balance to come down.
• "Why am I being stressed to pay my bills and the people who owe me are all cool and relaxed" 
• They better have the money ready today. 
• "Why do I have to work for my money and then turn around and beg for it?"

Then it get's extreme. 

• If they don't pay my [your choice] money today someone's gonna get hurt big [your choice] time. 

Now different reader reactions may come from the last extreme thought, but you know it's true. Even if you're good two shoes. When the pressure's on, you can sometimes have rather unholy thoughts. 

Small business owners, you must consider this:

1. Don't give anything on credit that you're not prepared to give for free. Always collect your money on or before delivery. 
2. Have proper record keeping systems in place and ensure your operations are air tight. 
3. Always be known for delivery of sound products / services in a timely manner. Your clients will be more inclined to pay on / before delivery of your offering. 
4. Have clear written policies on your invoices. Many people no longer honor their handshakes. [Sometimes contracts aren't worth the paper they're written on] 
5. Always collect deposits. Why should you invest more in someone's interest than they are willing to put in themselves. 

When doing business. There's one result that you should require for the work that you do. 

Here it is! 

Remember, accounts receivable affect small business owners even more directly than that it would larger businesses.

Richie B. is responsible for Business Development with Blades & Blades Consultancy Services LP. He has experienced many successes for his clients over time and enables them to realize their business dreams. The above information will help you fast track your business to success; saving you time and earning you money.

It's time to get serious...Customer Service

Observing the recent state of business development, one thing is clear. There is a uniform lack of customer service being given by Barbadian businesses. The thing is, we are quick to complain about other businesses with whom we interact, but seldom cast the eye on the operations within which we have control.

This article which shows Where to Get the World's Best Customer Service speaks volumes of where we need to go, if we are to even enter the map of the customer service grid. We have no end of people doing hospitality, tourism and hotel studies; they are not absorbed into the industry, yet there is a constant decline in customer service.

Programs of training speak to how we must address our internal customers, an arena where we can practice offering good service but is often ignored / neglected. There are even programs that have been developed which show clearly how to establish competence in customer service in your respective careers; yet customer service receives little more than "lip service".

You will notice from the article that the countries listed among the best in customer service don't even seem to focus on tourism. They just function on doing business under circumstances where their "customers" / clients are embraced in a welcoming environment and feel a degree of comfort wanting to do business repeatedly with them. They understand that the key ingredient in gaining business' market share is in fact the offering of the best customer service.

Customer service has to be tops in face to face contact, on the telephone, in your correspondence, in every aspect of interaction regardless of whether the person is perceived to be a high value customer or not.

Keep tuned in as we will over the next couple of weeks be looking at customer service and its impact - on businesses and the beneficial spin-offs on entire economies.

N.B. Kudos for the image. We don't know who produced it, but we wanted to say thanks for allowing its use.