As the world slowly returns to normal, getting your business’s finances back on track should be at the top of your to-do list.
In the last year, thousands of small businesses have had to pay the ultimate price and close their doors for good. For many businesses, the COVID-19 pandemic has created uncertainty and an unstable workplace, making financial stability seem like a pipe dream. Business operations not only halted, being able to recover owed funds did too.
When unpaid debt accumulates, a business needs to prioritize time and effort to retrieve the money owed. Having outstanding money owed can be a nuisance and challenging for day-to-day operations, which is why now is the time to start putting together a game plan to recover those debts and get your business back on track.
Consider how you can recover your unpaid debt from debtors ethically and fairly to start getting your business back on the path to success.
Work with a Debt Collection Agency
The economic setback from the pandemic led to worldwide upset and a call to action to support more locally owned businesses. The thing is, with thousands of people and businesses in financial debt, also comes unpaid debts for operating businesses.
When you team up with a creditable, dependable and honest agency, you’re more likely to recover the outstanding debt. Passing your unpaid debt to a debt collection agency can help you get back on track and focus on what matters, your business and customers.
Whatever sizes your unpaid bills are, trust a reputable agency to help you get your money back promptly.
Follow-Up with Clients
If you prefer not to deal with a collection agency, send out an invoice followed by a polite yet stern letter. You want your client to feel respected while still understanding the urgency and importance of the matter. It’s important to include a final payment date in the letter. If you’ve done all that you can, include a telephone conversation. If there are still no payments past the due date, stop any further work.
A widely used marketing strategy, a Call to Action, is used to get consumers to respond and take action. When on social media, businesses aim to get the consumer to click on posts and engage, which no longer is an easy feat.
The online ad trends are a competitive place as nearly 3 out of 4 users think there are too many ads. While social media may be a saturated market, it still is one of the most reliable sources of traction and engagement with customers.
When considering ways to get out of debt, your local community should be the first to look at. Locals want to keep the businesses local and assist in any way. There are different ways to reach out and ask for help from your community by:
- Bake sales
- Garage sales
Throughout the pandemic, businesses and communities have banded together to assist each other in all ways. In December of 2020, a small-business owner set up a donation box for gloves, masks and other gear at four Home Depots around his area. He would pick a carload of PPE donations and deliver them to hospitals, medical clinics and assisted living centers.
One of the many benefits of having a small business means you have loyal customers. It’s important to look out for them as you want them to look out for you.
While recovering from unpaid debt may require a professional debt collection agency for help, it can also be a way to reach out to your neighbors.
The post How Your Small Business Can Recover from Unpaid Debt first appeared on Mind My Business.