Talk to any credit control expert and they’ll tell you the sooner you follow up an overdue invoice the better. You’ll not only get paid sooner, but you’ll also send a clear signal to your customer that you take your payment terms seriously.
If you employ people to provide services to customers, it’s vital to manage the hours invoiced to customers compared to those you pay to staff. Reason being, the differential is potential lost income to your business and precious profit.
Setting a price for your product or service can be difficult to get right. We think we’re rational when we assess the value of something. But there’s actually a lot of factors, including the prices of competitors and our own emotions. Understanding behavioural science is key to setting the right prices and improving your profitability.
No matter how innovative, sought after or profitable your small business may be, without cash in the bank, you’re going to face some serious struggles.
“Success.”
Typically defined as: ‘the accomplishment of an aim or purpose.’ (1)
Success means a lot of different things to different people. Success may mean wealth, or it may mean happiness. It may mean fame, and for others it may mean power. But can revenue be a true predictor of success?
Back in the day, retail pricing was relatively straightforward. Customers would walk into a store, browse products, look at their price tags, and if they like what they see, they would move on to checkout.
When deciding how to price your products, you need to understand how – and where – your business fits into the economy.
Invoices are a necessary evil. It’s what your agency needs to get paid! As your agency’s financial manager, ownership of this monthly responsibility falls to you.
Do you know who an incredible advocate for hard work was? Mary Poppins.
There’s some truth to the saying “You have to spend money to make money.” When you’re running a business, shelling out without seeing an immediate return is part of the territory.