Twas the month before Christmas … and if your business deals with consumers the money that is owed to you may very well end up under the tree come Christmas morning. That might even be true if you operate as business-to-business, although it may be that your money will become presents under the tree through the giving of bonuses, gift exchanges or corporate gifts. Or it may take the form of holiday parties.
So the holiday tug-of-war begins. As a business owner or executive, your goal is to finish strong in order to meet profitability goals. Strong year-end cash flow may allow you to contribute to helping others, to rewarding employees and to meeting your 2012 objectives. It may put you in a position to expand or to provide profits that can be profit-shared.
So what can you do?
- The secret is to start now. Send statements early and follow through with a written reminder in ten days.
- Call to follow up.
- Consider providing incentives to your employees who bring in a certain amount of receivables.
- Consider offering customers a discount if they pay their bill within a certain time period (say, ten days from receipt of the statement).
- Utilize a third party to diplomatically get paid during this critical time of the year.
Don’t confuse running a profitable business with being Ebenezer Scrooge. You’ve worked hard for your money and there is no shame in running a solid business. May you finish strong.