You are already a professional

You know your business. The problem is, you may not also have an MBA, if you are an attorney, store owner, service provider or other expert. An MBA takes time and money. It may not even teach you what you need to manage your particular business.

You do not need a degree in finance, you need specific knowledge

You have invested in yourself, to learn the things you have needed to start and run your business. It may be time to learn what you are missing in terms of managing your business finances. Business financial management can seem like a puzzle. Some of the pieces are more important than others, depending on the size of your business. 

Where to start?

Start with Accounts Receivable. Why? Because many businesses go under because they run out of money. Outstanding Accounts Receivable is money owed to you for work you have already done. You have every right to call the organization and ask them to pay you. Find out how much money your customers owe to your business and start collecting.

Secrets to collecting money owed to your business

1)    It’s Personal - The number one secret is that collecting money is personal. If you have a problem in this area, you will need to focus on the problem with a fair amount of urgency. You, as the business owner, will need to tackle it. It is personal to your business survival.

2)    Personal Relationships Matter - That leads to the second secret, personal connection is the most impactful, even in collections. The best person to ask for payment is the one with the best relationship with that customer. Today, the closest you may be able to get will be Zoom or a phone call. Add the ‘ask’ to a conversation dealing with other business, if possible. 

3)    Keep it Professional - The third secret is that a collection ‘ask’ is also a customer touchpoint. You want it to be friendly and professional. When you are seen as taking care of your business well, customers have more confidence in you. 

Yes, it is going to feel awkward at first

One way to deal with the awkwardness of asking to be paid, is to practice in front of a mirror, on Zoom, or with a partner or friend. Role play to try out different approaches. One approach I have found successful, is to explain that “I have already paid all of my expenses related to this work, so I really need this money.” Or, “I have already paid my employees, I really need payment, can you pay today?” Or, “I now accept payments by Zelle, Venmo and Paypal. What will work for you today?”

Make accounts receivable review part of your routine

What financial or management routine do you already have in place? Add a few minutes to reviewing your outstanding receivables and then plan your collection moves. If you work on it some, each week, your cash flow will improve, and you will be on your way to a more solid, reliable, profitable business.

If you would like to discuss your Accounts Receivable challenges with me, I would love it! I really, really believe you should be paid well for your work. I offer a Free Payment Acceleration Discovery Session you can Book directly.

Melanie Blau McDonald

Owner – Strategic Receivables

www.strategicreceivables.com