Tip of the Month:
Managing Your Business in Difficult times
You don't have to be told that times are tough - you
it every day. Home foreclosures are at the highest
since 1979. Consumer bankruptcy filings are surging.
Business has changed. It is no longer "business
usual", based on a handshake or verbal
Now, more than ever, it is essential that you
business practices to protect your interests,
your risk and maximize your cash flow.
What can you do?
First consider having a written
It should clearly
define the scope of the work you will do or
will perform, the time frame, and clearly state the
Next, be more careful who you give credit to. Use
credit application and run a
banking, employment, credit card information and
checking credit references can help you identify
problems before they occur and will give you
tools to use if you experience payment problems.
Set up a regular system for
receivables, send letters and make regular calls to
customers for payment. For truly difficult cases
want to consult a lawyer who is experienced in
practices and litigation.
It is quite possible that some of your customers
struggling to pay all their monthly bills. Credit
applications, clear contracts and calls from your
receivables/collection department will all help
customers decide that your company's bill is the
should pay first.
In the next several newsletters we will go into
on how to institute a more systemized approach to
business practices. Doing things in a more formal,
business-like manner will help you to run your
better and more profitably.