Small Business Cash Flow Management: 5 Steps on How to Receive Invoice Payments on Time


Please sir, I want some more. Excuse me ma’am, I want some more. Oh pretty please sir, I want some more. Really? If this is how you manage your cash flow,
receiving late payments all the time or not getting paid at all, then we really need to
talk. Hi, I’m Naomi Skarzinski with the Top Shelf
VA channel, your place for creativity and inspiration for business and life. Now, if you’re new here, please take one
second, yep, right now, and click on that subscribe button! I really appreciate your subscribing because
the more my channel grows, the more opportunities to help others. So, are you acting like Oliver Twist, desperately
begging your clients to pay you on time or even pay you at all? Do you stand there, meekly looking up, bowl
in hand and softly say, “Please sir, I want some more.” Now, I know you would think we would start
the discussion about cash flow management at the starting line. Analyzing what’s needed for your business
but in my opinion that’s really not the place to start. We’re going to start this conversation at
the finish line of the cash flow management cycle. We’re going to discuss how to get your invoices
paid on time. Now, why are we starting at the end? It’s simple. With the years I have been in business, I
have seen a handful of clients, and way too many of my colleagues in the service provider
industry, not get paid or not paid on time. Since they haven’t been paid, they then
struggle to meet their own obligations. Well, guess what. You could carefully complete a cash flow analysis
for your small business. You could have an extremely clear picture
of what your personal cash flow requirements are. You could even be proactive and analyze what
you need to do to manage your cash flow whether you’re in an economic recession or in a recovery. None of that matters if you are not being
paid on time. All of your small business cash flow management
analysis systems, your fancy accounting software, and your forecasting goes completely out the
window if you are not paid. If you’re not being paid, you’ll always
be in the feast or famine cash flow conundrum. That’s why we start at the finish line. Now, there are five basic steps all small
business owners need take to ensure invoices are paid on. Number one, change your mindset. You are no longer an employee. You’re are running a business. You need to start seeing your business with
an owner’s eyes, not an employee’s eyes. Number two, establish boundaries. If you don’t know what your boundaries are,
you then end up allowing others to dictate what happens to you. This has to stop immediately. If you’re not sure about how to set your
boundaries, watch my video, “Setting Boundaries for your Business and Your Life.” I provide seven steps in that to setting strong
boundaries. Now, number three, have an agreement or contract. Even if you’re the only one in your business,
you need to have an agreement or contract. No one should conduct business without some
type of agreement that sets out the parameters of the relationship. This agreement helps to solidify some of those
boundaries you established for your business. Number four, have a late payment policy. All contracts should have a late payment policy
clearly stated. This policy should include your standard due
date of all invoices. What happens when payment is not received
by the due date. What the fees are for the late payment or
non-payment, and whether services will continue or stop until payment is received. Number five, strengthen your backbone and
enforce your late payment policy. When payment is not received by the due date,
don’t wait and hope your client remembers to pay you. Send an e-mail, get on the phone, contact
the client and remind the client about needing the payment. Now not later. Don’t stop reminding your client. Be persistent — obnoxiously persistent if
you have to. This has to be part of your cash flow management
strategy. Now, do be polite but firm and adhere to your
late payment policy, no matter what. Now, occasionally, hopefully rarely, there
will be clients who will test your boundaries and policies. If they learn they can do it once or twice,
they will keep not paying you on time or at all. Now here’s the best advice I can give you. If a client does not pay you, do not keep
providing services in the anticipation he or she will pay you next month. All that does is present your client with
an even larger invoice that won’t be paid the following month. Now fortunately, in my business, I’ve never
had to halt services for non-payment of an invoice. However, I have seen way too many service
providers talk about how they haven’t been paid in months but they’re still working
with the client. Don’t do it! Remember, receiving invoice payments on time
is where you should actually start your cash flow management system. Here’s my question for you. What type of systems do you have in place
to ensure you are paid on time? Let us know in the comments section below. The more we share, the stronger our businesses
and our lives will be. Now remember to subscribe to the channel and
like this video. As usual, this full edition of this report
can be found on TopShelfVA.com. Thank you so much for watching. As always, this is Naomi with Top Shelf VA.com. Until we meet again, have a wonderful day!

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11 thoughts on “Small Business Cash Flow Management: 5 Steps on How to Receive Invoice Payments on Time

  1. This is superb advice! Oh my… how I could have used it about 6 months ago. I finally got paid by the deadbeat client – 107 days later. Of course, it's my own fault for making every mistake in the book. Thanks so much for these wise insights that I KNOW can only come from someone who actually runs a real business!!

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