There is no doubt about it- January is often the hardest month of the year to be in business. And is it any wonder? A week of December is a write off meaning you can’t generate any new income, as is the first couple of weeks of January as you wait to be paid December invoices. Thankfully though there are things you can do to mitigate the pain and here they are:
It really is a simple as that. Frustration won’t get you anywhere, so instead of being annoyed that no money is flowing in, just try to accept that there is nothing you can do to change this. We have clients we know won’t pay us until January and we are a debt collection agency with COD terms. We know we will get paid though so we are fine with it. Expect to be paid around mid January and plan around this.
If you have a bill due and are concerned you won’t be able to pay on time, just ask for an extension. It will take 2 minutes of your life and will make you feel so much better.
Your spending. Yes that brand new desk looks tempting and the new iPhone would be cool, but if buying fancy new things now will mean you can’t afford to cover more important expenses later, then don’t do it. As you can expect, we see this kind of thing all the time and once the snowball builds up momentum, it gets ugly real quick.
If you can, change the expected payment date on your invoices to Friday 11th January 2019 which should give your customers sufficient time to pay. Start calling and emailing them on Monday of that week, but leave the baseball bat at home- getting heavy won’t work and will just pi** them off and make them pay you even later.