Time to work on your business
August 4, 2020
Market insight by Luisa Grey, Director, Eazipay Ltd
Ask any business coach what their number one priority is when they are working with a small business and they will answer: “Don’t just work ‘in’ your business, make time to work ‘on’ your business.”
It’s a tough ask, especially when time is the one thing you don’t have enough of to begin with. Working ‘on’ your busines may be a tall ask, but it is absolutely critical to your success – now more than ever when there is so much uncertainty fogging the economic landscape.
So, in wanting to help you get started on the road to working ‘on’ your business, let me ask you a few questions to get the ball rolling. Since lockdown began in March, has your business been paid all the money its owed? If it hasn’t, how do you expect to be paid? How will you manage those late payers moving forwards? Do you even want late payers as customers and what impact has all that had on your cashflow?
Working ‘on’ your business means planning for the future, developing new products and services, recruiting brilliant members of staff, reaching out to investigate new opportunities and markets. Working ‘on’ your business is inspiring and exciting and it is totally dependent on one crucial ingredient: cashflow.
If you have positive cashflow, then all the above follow naturally on from that solid foundation. If your cashflow is out of control, then planning for business success becomes almost impossible.
We make no apology for focusing on the importance of positive cashflow, it is absolutely vital to the success of any business and Eazipay is devoted to making your cashflow. It’s what we do.
Being paid by Direct Debit is the only tried and tested way of ensuring that your invoices will be paid on time and in full.
Far too many SMEs, however, think that Direct Debit is only available to large companies. It isn’t. By tapping into the expertise of a Direct Debit and automated payment processing company like Eazipay, you can enjoy the same positive cashflow advantages that much larger companies have.
Coming from a director of one of these companies you’re probably – and quite rightly - thinking: “Well you would say all that, wouldn’t you? It’s your company.”
So, put my job title to one side and allow me to speak for the thousands of individual companies that we work with every day. Collecting the money they are owed by Direct Debit works. It works for all our clients and it will work for you.
Once you have set up an account with Eazipay, we make sure that the money you are owed is collected on time and in full. Once it has cleared, we transfer it to your company bank account. It’s as easy as that.
If you continue to work ‘in’ your business, then the following scenario is likely to be a recurring nightmare for you: You perform a month’s work and at the end of the month you submit an invoice for payment in 30 days (i.e. the end of month two). At the end of month two, you fully expect to be paid for month one, so you start work on month three. But payment for month one hasn’t arrived, and you need to submit an invoice for month two. By this time, you are well into month three and you haven’t seen a penny.
What is worse is that your creditors are beginning to call you wanting payment. What do you do? Do you really need that level of stress, anxiety and angst?
However, if your work ‘on’ your business, then you will recognise that the example above has ‘failure’ written all over it. So, you set up a Direct Debit payment processing and collection account with Eazipay and tell your customer that you will submit your invoice for payment at the end of month one. So long as the funds are available, Eazipay will collect the amount and pay it over to you in a matter of days. Positive cashflow all round!
And if your customer decides to cancel their Direct Debit, you will know immediately. This gives you the opportunity to decide whether you continue to supply that customer immediately; not after you have billed them, chased them, and finally spoken to them. The reporting infrastructure that comes hand in hand with Direct Debit always keeps you in control.
If your customer says that they don’t want to pay by Direct Debit, then that should speak volumes about their own cashflow confidence.
That’s the difference between working ‘in’ your business and working ‘on’ your business. Your time is precious, make it work for you.
Luisa Grey is a director of Eazipay Ltd, one of the UK’s largest and fastest growing automated payment processing companies. Eazipay provides regular Direct Debit collection and processing services to thousands of SMEs and corporate organisations in a wide range of market sectors throughout the UK, Europe and beyond.
For more information visit www.eazipay.co.uk