Thoughtful Thursdays - Get it in writing

Today's thought stems from working with business owners who are also new to business and one of the avoidable issues that arises with more regularity than one might think - getting paid on time

A business infrastructure detail that is often left on the back burner by small and micro business owners is Terms and Conditions of Sale. In the excitement of getting orders followed by operational demands required to fulfill those orders, the finance manger's hat is often left alone on the rack, and does not get dusted off until suppliers begin demanding payment and you find yourself having trouble collecting receivables.

It can be difficult even when all the documentation is in place, but without signed sales agreements or contracts the task of collecting what is owed can take months or even years.

Before you go through the list of convenient reasons for not using agreements or contracts such as:

• We don't need a contract, I know them
• I don't want to risk losing the customer with extra paper work
• Legal fees to draw up documents are too high
• A handshake is good enough for me
• We understand each other
• I trust them

Think about how much it might cost you if you do not have documentation in place. Is it worth the risk?

Good selling,
Richard