Whether you're working for an company or on your own, the thought of saying 'no' to a client can be panic-inducing. It can be especially stressful if you're starting your own business or trying to grow your new business. The good news is that there are particular situations that actually call for a resounding negative response. When you say "no," you can feel like you're doing what's right for you and your business.
If you're starting a new business or have grown a business from the start, you will have some idea of what it takes to "wear many hats" or be as resourceful as possible. During that startup phase, you're analyzing, measuring, listening and on high alert to what is making your clients happy. According to best-selling author and researcher, Scott Sonenshein, this resourcefulness reveals a "stretching" mindset and is one of the reasons you're succeeding.
If you're struggling, it may be due to a "chasing" mindset.
The pandemic has highlighted businesses that chose to switch up their business strategy in order to remain profitable. Retailers have found new ways to sell to consumers, such as The Gap's highly successful pivot to selling masks, and many manufacturers are turning to a DTC (direct to consumer) model. Any crisis is a true test of agility for entrepreneurs and large enterprises alike, and the COVID crisis is definitely testing most companies around the globe.
There's no question that businesses and cash flow have been affected by the recession and pandemic. Some companies have taken advantage of this time to pivot, rebrand or change focus to save their businesses and keep their customers happy. In the middle of all of that, you might be facing the stress of lacking resources necessary to keep going. You might also be surprised to learn that you actually already have the company funds you need.
Just like when any relationship turns sour, you're left dealing with the things you couldn't agree on. Unfortunately, when your good business clients refuse to pay or communicate, it may be time to bring in a mediator to ensure your assets are protected and your agreement holds up. Whether you've decided to escalate their continued late payments, write off their account as bad debt or pursue litigation, you don't have to do it alone.
Once your sales team has built enough trust to land a new client, the onboarding process will lay the groundwork for the ongoing client relationship. This is the time that the client is open to you and, at the same time, cautious of your next steps. It's important that you hit the ground running (or even before signing the agreement!) so the client feels an immediate sense of relief.
No matter the type or size of your business, accounts receivable and collections is a valuable part of your operations and cash flow. B2B (business-to-business) accounts receivable and collections, however, is very different than B2C (business-to-consumer) for a number of reasons. In this post, we will uncover the differences between these two types of businesses and how their receivables and collections processes are different.
Businesses and organizations are pushing through the effects of the pandemic on the economy, their industry or their customer response. At the time of writing this, there is no such thing as "after COVID-19" however experts are learning more each day. While everyone is searching for the next normal, it's important to consider how the virus has affected your client relationships and customer service.
First party collections, in which your business relies to manage delinquent and non-paying accounts, are a valuable resource to get invoices paid. Getting your invoices paid on time helps ensure working capital and sets your business up for success. In house collections specialists, therefore, are beneficial and necessary, especially in a growing business.
Owning a small or medium business can be especially frustrating when your clients are paying late or not at all. It's good to note that how you respond to these situations will affect the success of the debt collections and if you can retain the client as a customer. In this post, we will offer tips to ensuring your invoices are paid on time and we will share how and when you should send a business to collections.
Read more to learn how.
