Establish Your Business On Prompt Payment

How many times have you stopped working for a company that doesn't pay promptly? Do you find you spend an unreasonable amount of time chasing payments: time that could be better spent on marketing, training or even having some free time for yourself? If you run a business (and this includes being a sole trader) are you guilty of not paying your suppliers on time and according to their payment terms?
Perhaps you should bear the following information in mind (courtesy of The Better Payment Practice Campaign) next time you hold back on payment.
Late payment results in:

• A damaged reputation and, therefore, a weakened business
• A damaged supply chain and strained relationships with suppliers
• A weakened economy
• Giving the impression that your business is in difficulty.

You can gain in reputation and buying power when you commit to prompt payment because:

1. Suppliers will be keen to work with you again
2. You avoid costly late payment charges (and more and more businesses/sole traders are wising-up to the interest they can legally charge
3. You save valuable time on damage control and restoring good relations
4. You can approach your suppliers and customers confidently and build their confidence in you.

How often have you asked or been asked for a reduction in fees, with a promise of regular work?
Deals for customers and suppliers in other industries are usually based on loyalty and commitment. Supermarkets do not give reward points to customers who haven't even stepped through the door, just because they say they will be come regular customers; they "reward" the customers who buy from them over and over again and who take advantage of offers throughout the store.
Similarly, you should not accept a new customer who wants an immediate reduction in fees with, usually empty, promises of bulk work and a strong working relationship in the future. Wait until they have established that relationship and proved themselves to be prompt at paying and genuine about the work that they can offer, before doing them any favors.

If you are interested in learning more about establishing and building a solid thriving business then please visit the smart women's business network. The Secret Women's Business Network was established to help women all over the world learn more about good business practice and provide an environment where you can grow as a business owner