Running a business is not for the faint of heart, with a third of small businesses failing in their first two years. The reason for that failure? The vast majority have cash flow problems that are too much to overcome. When you’re a small business, even one late payment can have a major effect and make it impossible to pay your own bills. The time you have to focus on tracking payments and contacting people to get invoices paid means less time for marketing and production.
If you find yourself chasing payments and trying to get those invoices paid up on time, you’re wasting time that could be otherwise spent on increasing sales and building your business. Unfortunately, if you don’t pay attention to those late invoices, your cash flow will suffer and you can’t build your business without money. So, what’s the solution?
The best way to ensure that your clients pay up on time is to charge a late fee. Set up a basic template that gives customers the option of paying on time or paying more if they exceed the maximum time requirements. For example, you may have a 7-day payment policy, where clients must pay within 7 days of receiving the invoice. If they pay after that, a late fee is added, which means you make money for getting a late payment.
Automation is the key to getting your money while freeing yourself up to work on other areas of your business. A system like Late Fee Manager can help you automatically send out payment reminders to your customers and, if they don’t pay on time, it will automatically add on the late fee for them to pay.
Having a steady flow of incoming money is key to keeping your business afloat. It’s tough to stay ahead of bills yourself if no one else has paid up, so it’s time to take matters into your own hands. Late Fee Manager is the perfect option, taking over the dirty work for you.
Automate as much of your business as possible so you can free up hours of your time each week. When it’s all set up, you can rest easy knowing that the money will come in while you work on other areas, such as marketing and branding or production. Then sit back and watch your business grow.