It doesn’t matter how little management training someone has, there are some things which should be patently obvious. One of these is cash flow and getting paid on time. However, there are many fairly straightforward things which can be done which are often missed.

One example is using your power to get what you want or need. This only applies where you are in a position of strength. For example, if you provide a critical good or service to your client. It might be that they have outsourced their entire IT department to you. When their system has crashed might be an ideal time to persuade them it’s time to pay up. This could of course backfire when it is time for them to renew their contract.

If we continue with the above example, an alternative way to ensure prompt payment might be to renegotiate the whole package with the customer. Perhaps a ‘pay as you go’ contract where the client pays for their support as and when they need it rather than paying an annual charge. Alternatively, a monthly retainer would provide regularity to the payments.

One of the simplest ways to increase cash flow is to invoice more frequently.