The easiest way to make money is with a passive income. One of the easiest ways a business owner can do this is by having a credit policy. Something you set up once, when you start your business and then update as needed. Once you do the initial work to set up your policy or plan, you can then change it to suit your business and change your plan if needed as your business grows. Passive income is money you want to be making while you work on other projects or while you sleep. I am a big fan of passive income.
If you have a credit plan in place when you start your business you will start out making more money than someone who doesn’t have a policy. You will also save money because when you get a bad check or a customer who isn’t paying, you will know what to do right away and be able to take those steps immediately. Because you are smart enough to know that the sooner you take action on a bad debt the better your chances are of getting paid.
The more ways you can set up passive income the more money you will make with less effort over time. If you handle slow pays or non paying customers or returned checks IMMEDIATELY you will collect that money quicker and more effectively. This can be as easy as making one phone call or sending one letter, or it can be more involved needing more calls or letters or effort on your part. But you know that if you have to spend more of your precious time that you could be making money, trying to collect from a customer that didn’t or isn’t paying you, that it will not happen again.
I have run into business owners who receive a bad check from someone, place it with a collection agency, end up losing money and then accept a check from that customer again!! Do not do this! When someone causes you to take time out from what you do for a living to try and collect money that is rightfully ours, revoke their credit, put them on pre-pay or accept cash only from them.
You are not in business to make friends, you are in business to make money.
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