Have you written out your New Year’s resolutions yet? How about for your business? The New Year is the perfect time to take stock of what is working (and not working) for your business and to set goals that will create greater, more sustainable success.
One of the biggest factors in the success of a business is maintaining positive cash flow. No matter the kind of business, there will always be customers who can’t pay on time or, in some cases, at all. While this may be inevitable, the way you handle these delinquent accounts can determine the financial health of your business, as well as the health of your relationships with customers. So how can you guarantee that 2015 will be the best year yet? Here are three accounts receivable resolutions your business should make for the coming year:
1. Be proactive.
When it comes to delinquent accounts, timing is everything. Many business owners wait until delinquent accounts accumulate and age before beginning pursuit. However, the older an account gets, the less collectible it becomes. The best way to counter delinquent accounts, is to prevent them. Being proactive about your accounts receivable will prove to be easier, more economical, and more effective than treating problems after it is too late.
2. Embrace a non-alienating approach.
You may not always be able to prevent delinquent account from coming your way. What you can do is determine how you handle them when they do.
Aggressive tactics don’t work. In fact, they cost many businesses valuable customers. But what if you were able to recover money owed while also creating a positive customer experience that led to loyal, life-long customers? Well, you can. Delinquent accounts create an opportunity to work with customers in a way that reveals the integrity of your business. By using a non-alienating approach in the collections process, you will find that it is easier to work out a solution that satisfies both your business and the client. Plus, this positive experience will keep your customers coming back and telling their friends about your business.
3. Invest in the right tools.
Your business is as good as the tools it uses. Today, most people-- including those dealing with debt in collections-- expect digital solutions to be available, while still desiring a personalized experience. This means that it is important to offer user-friendly technology that makes customer interactions easier. It also means getting the help you need to create the best possible personal experience for your customers.
Technology alone cannot offer your customers what they need, and relying on internal staff that is not trained in collections is not likely to garner the best results. Your best tool for developing a process that is personalized, professional, and effective is an experienced agency that will help your team establish the proactive, non-alienating systems that will guide your business to positive cash flow and successful customer relationships.
Here’s to healthy cash flow, life-long clients, and a happy New Year!