Small business owners tend to struggle with different things, but there are a few challenges that most commonly crop up. Very few business-to-business entrepreneurs, for example, will not, at least from time to time, have to grapple with clients who simply seem disinclined to pay when they are supposed to. While it might be more or less necessary to work industry standard payment terms into contracts and invoices, even this is not to say that every customer will abide by these typically generous requirements. Fortunately, as one successful entrepreneur recently pointed out in her post here, there are good ways for small business owners to minimize all the associated headaches.
Most important of all, the author opines, is that a client should never be allowed to pay late without hearing something from the business owner. Some customers make a habit of testing their relationships in order to find out which can be exploited for advantages on a regular basis. A client who fails to pay by the due date established by a contract or the terms printed on an invoice should always be notified that such irresponsible behavior will not be tolerated in the future.
On the other hand, as the blog author admits, it can also be possible to push too hard in this respect and related ones. Losing a potentially valuable business relationship over a payment that arrived a little bit late might seem worthwhile in some very few cases, but it will typically be less than an optimal outcome. Business owners therefore generally do well to find ways of being both firm and forthright, but also pleasant to work with.
While that can be a difficult balancing act to pull off, entrepreneurs who make the most of all the available resources tend to do the best. In some cases, for example, it will make sense to look into options like factoring when an invoice seems likely to become overdue. By securing cash from a third party instead of being forced to clamp down excessively on a valuable client, a business owner can sometimes meet their own obligations without causing any unwanted side effects. Given that just about every B2B business owner will at some point have to tackle challenges like these, being ready to respond effectively will never hurt.