Prior to starting my own business, I literally devoured everything I could about owning and running a company. One thing that I could never understand was how a perfectly good business ended up going bankrupt because of cash flow problems. It wasn’t until I started my own first enterprise that I quickly learned that regardless of how profitable you were, it didn’t matter until that money was in the bank- Cash flow ruled!
Cash flow in a business is much like the oxygen we mere mortals need to survive. Getting paid for what we do is like breathing in, it’s the oxygen our business needs to survive. On the other hand, paying our bills is like breathing out. Much like our bodies, we can’t just breathe out nor can we just keep paying bills, we need a constant source of cash coming into our businesses and the only way to do that is to make sure our receivables are current.
Get Over It!
All too often I hear owners tell me they don’t want to annoy their customers by constantly bugging them. To this I usually respond with “get over it”. You’re entitled to your money and you need to get a little more serious about it. If dealing with consumers, don’t you leave or let them leave without being paid in full. With services like Square or Paypal you can accept credit cards on the spot, so there are no excuses. Getting paid in a timely manner ensures you give your business the oxygen it needs for it’s survival.
If you have a topic idea, send me an email and if I use your suggestion, I’ll send you an digital version of my book Get More LIFE Out Of Your Business
I’m Greg Weatherdon and this has been your Small Business Minute.
Copyright © Greg Weatherdon 2016
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