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Contrary to what some people have been yelling about email marketing being dead (they’ve been saying this for a few years now), it is very much alive. I love getting messages in my email box that are relevant to my wants and needs — note the keyword here is relevant. And you probably do too.
But I’m still amazed at how many companies “get” email marketing, yet still make missteps along the way. [Read more...]
Whether you’re a fan of the new healthcare reform or not, the recent passage of the bill requires that you help your staff understand how it will impact them. There are still a lot of unknowns, but the time is now to begin communicating. [Read more...]
How many times have you heard me say your small business is not a bank? Plenty I’m sure. 
And although I encourage you not to sell to your customers on credit, I’m a realist and do understand it’s a must for many small business owners.
So I tapped into Ted Shalek, CFO of Smart Online, a company that specializes in technology based solutions for small business owners, who believes that the risks associated with selling on credit can be greatly reduced if the proper steps are followed.
“Since we do not all have the luxury of knowing and trusting each customer, we must take precautions to protect the cash flow of our small business,” said Shalek, an authority on small business. “If you do not know the customer, make sure that you obtain solid and confirmable information about the prospective customer by identifying their name, address, phone number, email address and business/credit references, credit card numbers if appropriate.”
Here are a few simple steps he recommends you take to significantly decrease the likelihood of future collections nightmares
Send out 7 days before the original, agreed upon payment date, if you have not received payment.
In the email, let your customer know that you had an agreement, you provided the service or product on a timely basis and it is customer’s obligation to provide you with payment.
Place a professional call to the buyer and/or the point person at your customer’s office. During the call, be firm and remember to state the facts and identify specific payment terms and times.
If the amount owed is significant, make an appointment with the buyer to come by and collect the funds, and if they say the funds are not immediately available, keep the appointment and discuss specific payment terms and times.
If the customer/buyer refuses to accept your calls and does not reply to emails requesting an appointment, stop by the customer’s office unexpectedly and tell them that you are prepared to wait on their premises until you receive payment or have a meeting with the owner, buyer or financial officer.
Unfortunately, if the customer does not provide any positive feedback and refuses to acknowledge your communication, contact a reputable collection agency that will represent your company in a professional manner (remember that the collection company will retain a portion of the funds that collected from the customer).
Take care when selling on credit — and don’t forget you are not a bank. If it truly is necessary for your small business to grow, make sure you use proper care so you don’t set yourself up with collection problems down the road.
What do you think?
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