How do businesses actually collect their accounts receivables? It’s a tricky and often unpleasant process. But, one that’s absolutely necessary because it’s not only money owed, it’s time and effort already spent. More particularly, you can’t just avoid or ignore unpaid invoices. After all, your company depends on the money, regardless if you take up the task yourself or hire someone. Unfortunately, it’s a bigger challenge during such uncertain economic times. Biggest Obstacles in Getting People to Pay Up The most common difficulties in collecting accounts receivables can be enough to convince you to give up. People stonewall. They sometimes partially pay. Other outright elude. There are even individuals who’ll send in checks they know won’t clear the bank. All of these behaviors are sadly normal. But, making it all the more difficult is the current economic uncertainty. Your business’s accounts receivable are an important part of calculating your profitability, and provide the clearest indicator of the business’s income. They are considered an asset, as they represent money coming into the company. —Business News Daily The pandemic response resulted in both short- and long-term shutdowns. That put undue strain on many businesses. So, it’s understandable some would fall behind financially. Although, after a little while, you expect something out of them, even if it’s only an explanation as to why they can’t pay and a sincere apology. (Regrettably, the latter might just well be all that you’ll get.) Ways to Collect Business Account Receivables First of all, it’s critical that you have good accounts receivable practices. Being proactive definitely benefits your business. But, when invoices continually go unpaid, there are actions you can take. Here are three effective strategies to collect your business’ accounts receivables: Act quickly when a payment is late. Do not make the mistake of letting receivables age. The longer an invoice goes unpaid, the less likely it is to ever be paid. Sure, it’s uncomfortable to pursue payment, but it’s necessary. Be kind but persistent and also be consistent as to your collection demeanor and actions. Reach out with friendly but stern reminders and follow-up regularly. Offer recipients a decent discount. Of course, you naturally want every penny that’s owed to your business. But, if offering a discount means collecting the majority of what’s due, then it’s more than worthwhile. But, do not make the mistake of discounting further because it will only weaken your position. (Plus, there’s a cut-off point where it’s financially unfeasible.) Provide an easy repayment plan. You can also provide recipients with a repayment schedule. Breaking up the total amount into a few or several installments might just do the trick. You can even charge a fee for late or missed payments. You can also suspend any new business during the repayment timeline. Consistent communication. Most important, communicate to your customer, that they must communicate promptly and consistently and follow through with their commitments. What other methods would you suggest to collect account receivables? Please take a moment to share your thoughts and experiences. Your unique perspective could very well help a fellow entrepreneur out! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Independent Service Providers are Being Acquired and Local Businesses Can Use this Practice to Their Advantage Did you know your local service providers may not actually be part of an independent, small business? That’s right. The plumber you’ve called before, the electrician you’ve seen working down the street, or even the HVAC tech who has been at your neighbor’s house. While you may recognize their names and logos and think they’re a mom-and-pop organization, they very well be working for a large corporation. For people in the trades, this isn’t news. They’ve known about this for some time. It goes back to the COVID shutdowns when conglomerates realized the true value of “essential” services. These megacorporations recognized the potential earning power of local service providers and began to quietly acquire them. In order to maximize these new assets, the conglomerates allowed them to keep their existing names. But, when people call what they believe is their local service provider, they are really talking to a call center in another state or country. While many independent, small businesses use call centers, the difference is the technicians working for the acquisitions are no longer just trade professionals – they are now salespeople who push additional products and services. The individuals employed by these bought-out companies take the opportunity of their visits to upsell and their customers aren’t aware the familiar mom-and-pop business does not directly employ them. But, it’s not just the fact that these companies are ostensible fronts for selling additional products and services to increase profits for big corporations. It’s also the fact that legitimate small businesses must compete for the same customers. How Independent Businesses Can Take Advantage of Conglomerates Acquiring Competitors to Better Market Themselves Although it may be discouraging to compete against other companies backed by such deep pockets, there are some benefits you as a small business owner can tap into and use to grow your customer base. Yep, small, local businesses can use this trend to their advantage by emphasizing their authenticity and commitment to the community in their marketing efforts. Here are some strategies they can use you can copy in your own community: Highlight your local ownership. Emphasize your business is locally owned and operated by community members who are invested in the area. This can be done through website content, social media posts, and even in-store signage. Also, any vehicles, uniforms, and equipment. Engage with the community. Participate in local events, sponsor community initiatives, and collaborate with other local businesses to demonstrate your commitment to the community. This helps build trust and loyalty among local customers. Personalize your marketing. Use personalized marketing strategies, such as email campaigns, to connect with customers on a more personal level. Share the stories of vendors, employees, and customers to create a sense of community and belonging. Offer unique, local products or services. Highlight any unique products or services that are specific to your local area or that cater to the needs of the community. This can help differentiate your business from larger corporations and attract customers who value local products and services. Leverage online reviews and testimonials. Encourage satisfied customers to leave positive reviews on platforms like Google, Yelp, or social media. Share these reviews in marketing materials to showcase your support of the local community. Maintain a strong online presence. Ensure your business has a well-optimized website, active social media accounts, and accurate listings on local directories and review sites. This helps potential customers find your business and learn more about its local roots and commitment to the community. Offer superior customer service. Small businesses can often provide a more personalized and attentive customer experience compared to larger corporations. Emphasize this in your marketing materials and strive to consistently deliver exceptional service to build a loyal customer base. By focusing on local roots, community involvement, and personalized service, small businesses like yours can effectively differentiate themselves from larger corporations and attract customers who value authenticity and local connections. Want to Accomplish More? Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do? We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test. You can call us for your free appointment at (602) 541-1760, or, if you prefer,