One of the first things entrepreneurs need to learn is "cash is king." Without consistent cash flow, most businesses simply cannot operate. Entrepreneurs should work on ways to improve cash flow management in order to keep their businesses running smoothly.. The quicker businesses have access to cash, the more stable entrepreneurs can feel.

Accept a wide range of payment options
Customers can come up with several different excuses about why they weren't able to make their payments on time, and one of the most common is that they need more payment options. Although it may be a bother, entrepreneurs should conduct some internal analyses and see whether it is economically worthwhile to accept credit cards and various forms of e-payment. Setting up these services will make it easier for customers to pay up on their invoices and get cash in the hands of entrepreneurs more quickly.

Incentivize early payments
Entrepreneurs who have more cash on hand will have an easier time with cash flow forecasting and developing an accurate business projection. Entrepreneurs should reward their early-paying customers with a price discount or free trials of products and services. With these reward systems in place, customers will be more likely to pay up early. Early payments can be mutually beneficial for businesses and customers.

Place a "pause" on customers who pay late
Although it is not their first option, sometimes entrepreneurs will have to delay the work they are doing for late-paying customers. When receiving payments, it is important to have leverage to make sure money is received in a timely manner. Delaying the work of a customer one time will let that company know that timely payments aren't a suggestion, but a necessity that helps foster a problem-free business relationship.

Collect money upfront
Entrepreneurs who require an upfront fee before initiating services are often able to set the tone of the business relationship, which may help establish regular delivery of payment. Collecting money beforehand will give entrepreneurs cash flow to have on hand throughout the life of the contract and also demonstrate to the customer that their work will be completed in a timely manner.

Understand the expenses of customers
Many clients will have a number of expenses they have to pay for on a week-to-week basis; thus, they may simply not have the funds to pay their invoices on time. Entrepreneurs need to be sure to work with their customers and get a better feel for the money they have on hand. By coming up with solutions for customers and creating payment plans for the products and services provided to them, entrepreneurs may be able to cultivate a respectful business relationship. Customers who enjoy working with a company and feel positively toward it may be more likely to make their payments on time, which may help with cash flow management.

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