Cash is king. Most small businesses fail due to lack of cashflow so here are some ways that you can improve yours:
1. Only sell on credit to creditworthy customers
2. Have clear terms and conditions right from the start so that clients know when they need to pay you
3. Where possible get payment in advance
4. Invoice promptly. You can often do this from your phone using your bookkeeping app.
5. Set up repeating invoices where appropriate for retainer services. This will save time and ensure that you don’t forget to invoice if you are busy.
6. Take payment as many ways as possible. You can collect money by direct debit through Gocardless for a small fee (it will even handle the bookkeeping for you), or online through Stripe or Paypal, or by card using a simple card reader such as Square or Zettle attached to your phone.
7. Chase invoices promptly
8. Charge statutory interest and debt collection charges on late payments. If we all do it then nobody will be disadvantaged by being the only one who doesn’t.
9. Prepare cashflow forecasts to ensure that you can pay all your debts as they become due.