7 Cash Flow Mistakes Entrepreneurs Make

Expert advice on how to avoid the pitfalls that could cost your business money

Mistake #4: Not placing accounts with a collection agency soon enough. If your customer is ignoring your calls and letters, it may be time to use a collection agency. “And, you need to move on to what you’re in business to do, what you’re good at, which is not doing the bill collections,” she says. “Tell the customer we’re going to place your account with a third-party collection agency and then, do that. You can’t say you’re going to do something like that and then not do it.”

Mistake #5: Not having documentation to support or proof of the debt when someone doesn’t pay. This could be a bill of sale, a purchase order or proof of shipment. A lot of companies will submit a purchase order, which will show the date, the purchase order number, what department ordered it. It might even include the actual person’s name who ordered it, what was ordered. You can also get proof of delivery from whomever you’re using as a shipper.

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  • Carletta Threatt

    I need advice on increasing my enrollment
    at my Childcare center. The enrollment is
    down so low, a very nice center and the staff
    is certified.

  • Carletta Threatt

    Help in Macon Ga, I do not want to close my doors,help please… I enjoy reading the Black Enterprise…

  • Sheri M Green

    Hi Carletta, have you completed a comparison of your services verses your competitors in the same area? Figuring out why people are choosing other childcare centers over yours is key. Maybe a survey of what people are looking for in childcare throughout your area would be helpful. Just a few thoughts.

    Sheri M. Green
    http://www.ameenterprise.com

  • Michelle Dunn

    Sheri gives good advice, offer something your competition is not offering to make yourself more attractive to customers. Enrollment for childcare may also be down because of the economy – more people are out of work so watching their own children. Some things you can do to increase your cash flow are offer discounts, change your terms of payment, accept all methods of payment, offer something no other child care center offers to make yourself stand out.

  • Mr Yao kouamé hervé

    Salue je nomme yao k hervé originaire de la cote d’ivoire (c’est en Afrique)demande financière aux personnes de bonnes foies pour crée une entreprise pour se prendre en charge je suis au +22544014546 ou m’écrire à toupetait@hotmail.fr

  • Jorge Estemac

    I have established a corporation in Latin America with hope of promoting Afro-American businesses in that area of the Americas where the African-Americans are left outside the mainstream of society. The Afro-Americans in the USA should look outside the confines of continental USA, other ethnic and racial groups from other continents are taking advantage of these developing countries. I looking for Afro-Americans investors to join me in my efforts to develop opportunities for blacks in the rest of the Americas, and make a profit doing so. Globalization is for all of us to take advantages of the open market. I am seeking partners, investors in these ventures in the rest of the Americas.