7 Cash Flow Mistakes Entrepreneurs Make

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

Mistake #6: Shipping more products or performing more services when an account is already past due. “That’s another one of the biggest mistakes that business owners make with an account is they will ship more products or perform more service when an account is already past due,” she says. “If a customer needs to place another order it helps you to get paid because now you can let them know you already owe me this money and their account is on hold until this is paid in full.”

Mistake #7 Being too lenient with credit when the customer is a “friend” or family member. While this is a common issue that often has to be handled delicately, Dunn suggests not changing business habits for family or friends. “So if you complete a sale to say your brother, sister or your son’s little league coach or teacher, or somebody that you know locally you have to have them fill out the same paper work as everyone else,” she says. To gain a little goodwill, the business owner may consider offering the friend or family member a little more time to pay or a better discount than the public would receive. “You would make that clear to them so they know they’re getting a little bit of special treatment.”

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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

  • 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.