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Hobbies Don’t Make For Business Success

Everyone is finding the current economic climate tough. It’s times like these that sort out those who are serious about business success from those who are not prepared financially or skill wise to make a go of it.

It can be really disappointing to be forced to let go of a business idea that you thought would succeed – but in these financially tough times that’s the decision many fledgling and low profit business owners have had to make.

The reality is that a business built on a nice idea but not making any money is actually called a hobby. It is a tough lesson to learn but business success is not about keeping yourself occupied. It’s about running a commercially viable enterprise that makes money and has proper procedures and policies in place to ensure future success is maintained.

Successful business owners value what they offer and charge accordingly. In return they expect prompt payment for services rendered and when they don’t get it they take action. Cash flow is the name of the game for business success. If you are finding the cash flow of your enterprise a bit of a challenge you might find a few of these ideas helpful.

1. Unless those new ideas springing into your head make money file them in the bottom of your to do tray. If they’re that important do them when you’re on holidays. I can guarantee they’ll never get looked at.

2. Get tough – don’t let any product or service leave your business without payment being made.

3. Shorten your current payment terms and make it easy for customers to pay you.

(a) Include payment terms e.g. Payment Terms 7 days on all invoices issued.
(b) Provide a credit card payment form as part of your invoice template.
(c) Include the details of your bank account for electronic fund transfers.
(d) Communicate to your customers any changes made to payment terms. Outline changes in your client newsletter or through online client communications. 

4. Stop procrastinating and have the confidence to pick up the phone and follow up all accounts that are currently outstanding. They are the ones who should be feeling embarrassed not you. If people purchase products or services from your business they need to pay you for them – it’s that simple.

5. Overhaul your administration costs and work out ways to cut spending in this area. Look for ways to streamline administration tasks and procedures. Look for smarter ways of doing the same tasks but achieving better results.

6. Most importantly maintain or increase your marketing budget. When things go belly up most businesses incorrectly cut their spending in this area. Take advantage of the situation and relentlessly continue to increase your profile and presence in the market place. Whilst your competition hides away waiting for the economy to recover you’ve got the perfect chance to put your name in front of consumers that magic 7 times before they buy.

Lynette Palmen AM is the Founder and Managing Director of Women’s Network Australia W: www.womensnetwork.com.au  Lynette speaks across the nation to, for and about women in business.

Contributed by Lynette Palmen .   Lynette Palmen AM is the Founder and Managing Director or Women's Network Australia. She started WNA 20 years ago to offer support, inspiration and services that would inspire women to succeed in their career and business endeavours. WNA is now the Nation's premier networking organisation for business and professional women. T: 1800 052 476.

Lynette Palmen has written 44 article(s) for us.

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