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February 7th, 2012
Seventeen percent of small business owners stay up at night worrying about cash flow, according to the inaugural Western Union® Payments Small Business Barometer. Most small businesses know they need a better way to manage their cash flow, and finding a billing and receivables solution can be overwhelming…
Eighty one percent of small businesses do not have an A/R system in place and 36 percent say they don’t use an A/R solution because they don’t understand it… but there is help.
Would you be interested in publishing or discussing the tips below for small business owners geared to help them find the right solution for their business… and sleep well.
Demystifying billing and receivables solutions for your small biz
Cash flow: 86 percent of business owners report neglecting to invoice a customer in the past year (Western Union Payments Small Business Barometer) and 43 percent say 5 percent or more of their customers are late in payment on an average month. Keeping on top of receivables and payments is possibly the most critical activity for a business and one that many report dropping the ball on. Look for a solution that helps your customers by accepting a spectrum of payment options online (even if you don’t have a website), from credit cards, to electronic checks – at midnight, on a Sunday, instead of solely during your business’ hours.
Time savings: Look for a billing and payment solution that offers automated services to ensure the monthly invoices, reminders and receipts can be sent simply and efficiently. Also, provide customers the ‘automatic debit’ option for their convenience… and yours. Solutions that require minimal set-up time and have recurring features will enable you to have more time to focus on the other components of your business… like the reason you started your business.
Know customers… better: Look for a customer relationship management tool with customizable components to track customer’s behaviors and preferences. Use the tool to create a reporting schedule and view and update it monthly or quarterly. The receivables and payment solutions you want should have integrated CRM functions to help you, in seconds, better understand your customer – and their purchase history, preferences and challenges. Over time, this will translate to increased sales, stronger relationships and more.
Better communication: Not every solution will help you communicate with your customers. Fifty four percent of small business owners want to improve their marketing. Look for a seamlessly customizable one that provides the opportunity to market to and educate your current customers, as build brand recognition by including your logo. Offer referral discounts, updates and general info that will help you retain and grow your customer base.
Competitive pricing: Today, pricing for this type of solution makes it accessible to many small businesses. Look for a solution that charges a flat monthly rate for all services, for unlimited users and competitive credit card transaction fees. Read your merchant agreement thoroughly and examine the fine print; make sure you are comparing apples to apples. As your company grows, your solution will grow with you.
More than 30 percent of small business owners believe 2012 will be a good year for business. Implementing a financial strategy will help make this belief a reality.
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