Operating a small business takes a constant stream of cash to keep the business productive and growing. You may have bad business habits that are causing you to lose money. If you want to stay out of the red and keep all the money you earn there are some simple ways to save money.
1) Save money by returning all phone calls as soon as possible. Not returning phone calls can cause people to turn away from your business and on to the competition. Since you fail to get back to them quickly they may think you are not serious enough about your product or service. An excellent call return rate would be about 2 hours; if this is not possible return phone calls no later than a day. At the most 2 days is you are tied up in meetings or traveling.
2) Save money by checking your voice mail, answering machine, and every other communication outlet. You may have several ways for clients to reach you such as phone, email, fax and other tools to receive business contacts and communication it is important to have a system to check them all. Travel with your passwords in a secure or encrypted location and check at least twice a day all your communication tools. As you check your communication outlets make note of high priority items and tend to them quickly.
3) Save money and make money by billing promptly. You want the client to pay you soon as you deliver the product or complete the service. Carry the invoice with you as you perform the duties, therefore when you finish you can get it signed and leave it with the client. Prompt billing allows for quick payment and increased cash flow. The longer you wait for bill it is likely the client will consider your bill as a non-priority, and if they are working with a tight budget the non-priorities will wait. If this client requires 2-3 notifications before payment is sent, imagine the amount of time you will wait if you bill late.
4) Save money by reading all your mail – including bills. If you can not attend to them right away file the bills somewhere accessible and in plain sight. Opening the bills will provide you with knowledge of late fees, penalties and protect your company from over charges. Un-opened bills can also lead to lost bills when you are ready to pay. Ultimely unpaid bills lead to possible loss of a vendor and if you were originally considered a preferred client that status may also be in jeopardy. It is important to hold on to your best vendors because they might be the ones who make an important or lucrative project possible for you in the future.