We all make mistakes, but mistakes in business cannot be overlooked. Read on to discover two mistakes a lot of business owners are guilty of making at the moment.
Poor payment practices
Businesses need to ensure good cash flow if they are to run their business effectively. The same can be said for any business in any industry, irrespective of their size for that matter. However, when you consider that payments are typically made long after costs are incurred, you see how crucial cash flow truly is.
A lot of businesses are guilty of following poor payment practices, which can cause a lot of damage further down the supply chain. For this reason, it is important for all businesses to be aware of how to avoid late payments, and how to manage them if they do occur. It’s worth looking into right-party contact services to assist with this. But first, let’s get your payment procedure in order.
Firstly, ask yourself a couple of key questions.
1) Does the contract have a specific clause the deals with how much you will be paid, how you will be paid, and when you will be paid?
2) Do you thoroughly understand the payment terms of the contracts you have entered into?
There are two types of payment mechanisms – either you will make an application for payment to the payer, or the paying pater will notify you of what will be paid for and when. You must understand all terms outlined, from Final Date for Payment to Due Date, so that you know how to act if you aren’t paid on time.
Not having an effective website
One way to make sure your business stands out for all of the right reasons is to have an effective website. This is where a lot of project managers and customers will begin their search for the best firm.
A lot of businesses still aren’t live on the Internet today, and this is seriously getting in the way of their ability to win jobs. Procurement professionals want to know as much as possible about you and your company. If you do not have a website, it is difficult for them to find all of the information they need.
Your website does not need to be complex, but it does need to be well designed and a reflection of you and your brand image. You should have a detailed ‘About Us’ page with information about how long you have been in business, what sets you apart – i.e. an eco-friendly approach, any awards you have won, what areas you work in, what projects your contractors take on, your level of experience, the qualifications you and your crew hold, and how big your crew is.
You also need a ‘Services’ page, which will go into detail regarding the different services you offer. A portfolio page is also a good idea, as it gives potential buyers a unique insight into the work you have done so far. And, don’t forget to include some testimonials!
