Do Business Well

Even if you managed to obtain adequate finances for your business, one of the biggest traps is cash flow. Cash flow basically means the movement of money into your business (from the sale of your goods or services) and the movement of money out of it (to suppliers, the bank, other creditors and employees). The relationship of these two flows is very important. Many businesses go under because although they are owed a lot of money they do not have enough in hand to pay the bank/their own debts. There is nothing more frustrating than knowing you are owed 0,000 but not having enough cash in hand to pay for the weekly shop. Continue Reading »

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If they say they will mail it right out, mark the date that you both agree it should reach you on their file. Keep a record of each phone call by time, date, contact person, and details of discussion. Also keep a copy of all correspondence in the file.

B. Responses to wrong answers. Many times you will be told that they did not receive your copy by mail. Immediately send out a copy of the letter and invoice by certified mail, return receipt requested. If the amount is large enough or important enough you may want to use an overnight service. The key is to use a system that requires a signature. This will quickly eliminate this excuse. Follow up again with a phone call on the day you figure the item has arrived to confirm with your contact that they now have the invoice copy. Continue Reading »

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Your approach to payment of your accounts may have almost as much impact on the performance of your company as does the collection of your receivables.

In a perfect world, we would all enter into small business with plenty of cash. We would make money from the first day, never outgrow our financial resources, and never have a crisis interrupt our ability to pay. I have actually known a couple of small business owners for whom this has been true. Continue Reading »

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Your credit record is your financial reputation. If you want to rent an apartment, buy a house, get a phone hooked up, get a credit card, take out a loan, buy a blimp, or start a business, you need a good record.

A company that wants to check your credit can call other companies that have done money deals with you in the past, or they can get a report from a credit reporting bureau. But if you’ve never been granted credit in the past, you don’t have a credit record. Where do you start?

Fortunately, you don’t always need a credit record. Some credit grantors realize that no record is better than a bad one. If you don’t have one, they’ll look more carefully at other information on your credit application: Continue Reading »

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