Avoid Bad Payers and Depending on a Single Client
Customers are the lifeblood of any business, however not all customers are equal.
Jenny Retief, CEO of the Riversands Incubation Hub, offers advice for handling bad payers and the dangers of depending on a single client.
Eliminate bad payers
Cash flow is the lifeblood of any small business. It’s important to spot bad payers early, take deposits and process payments for larger projects.
Poor payers drain resources and energy and keep you away from companies and people who really appreciate your offering.
In general, keeping a tight handle on finances and not letting overheads tick up too much is key to your success.
Don’t put all your eggs in one basket
You need to constantly diversify your customer base. Depending on one or two large customers can be very dangerous; should they move their business you may also be out of business.
This means always keeping the sales pipeline busy and being responsive to new opportunities and new customers.
Large customers can be a blessing and a curse: a blessing because they provide the volume and regular business but a curse in that they may take more resources to service than they’re worth.