Running a business is not an easy task and even though the age of the internet and of social media has made it very much easier to run a business in this day and age, there are still many problems that young entrepreneurs have to endure during their first few months or even years of business. You may have heard that many of the new businesses that are opening up in this day and age tend to close down with the number of failed businesses amounting to almost eighty percent of all businesses. The reason for these failures is mostly the lack of planning when these businesses were first started and also the fact that these businesses failed to look at trends, study the market and get proper information about the hidden costs involved with running a small business.
You may not always get your money on time
Keep in mind that as much as we would want them to be, not everyone is honest and many suppliers and buyers alike will try to buy your products and not pay you. It is advisable that you always have an immediate payment plan for all of your products but unfortunately with some products, it does not work that way. You will need to keep a profit marketing that is higher so that you will be able to hire a debt collection agency to get your money back for you if this does happen to you.
You might be surprised to find that it happens a lot more often than you might think and this means you are likely to need the services of a business debt collection company sooner than you might think. In business, it is important that you do not trust anyone. It could be your own siblings or family members but it is always important to have everything in writing and signed by both parties.
Even in the case that someone does not intend to cheat you, human error means that they could forget or lose some money which is why it is vital to have everything in writing so that it is always clear. When it comes to your suppliers and your buyers, make sure that you have a written agreement in place drawn up by a lawyer stating all of the conditions of sale and the specific conditions of the credit period if any. A better way would be to offer a discount to people who are willing to pay up front so that they have a reason to avoid credit.