Greater Williamsburg Chamber & Tourism Alliance Blog

When it comes to collections, never assume

Business relationships are usually straightforward. You provide a product or service, and the customer pays you for it in a timely manner. But every small business owner will likely have to deal with tardy or missed payments. Don’t ignore them or assume the customer will eventually follow-through. Money owed to your business – known as receivables – cuts into your profits and complicates your cash flow.

A good collections strategy can help prevent slow payments before they become a problem, and ensure that income from aged invoices is not lost forever.

Your aim is to create a step-by-step collections process that starts by making smart credit granting decisions. And make no mistake: granting credit is exactly what your business is doing whenever you deliver a product or service without first collecting payment.

Customers are more likely to pay quickly if your invoice arrives in a timely fashion and is clear and simple. It should state explicitly, in itemized fashion, what it covers. Make it look clean and professional, and include your company logo. Cute designs may only get in the way.

Design it like a real invoice, not just a piece of paper with “amount” due typed in, and be sure it is clear how the check should be made out and where it should be sent. Including a return envelope can help. Also include a phone number and contact name for questions. Small business accounting programs such as QuickBooks can easily create your invoices. There are a number of accounting and book keeping firms that are Chamber members who can assist you.

Be consistent, mail your invoices promptly and send a reminder immediately if payment is not received by the stated due date. On long-term projects, consider progress billings.

If you do not need to press for collections, don’t use threats or emotional appeals. Phone calls are more effective than letters or emails, according to collections experts, so contact your customer directly and/or the business’ accounting department. Be polite, yet firm in asking for immediate and full payment. If a letter is necessary, it should be personalized and sent by registered mail so that you can verify its receipt should legal action be necessary.

If you have questions about this or other business subjects call SCORE 757.229.6511 or visit www.scorewilliamsburg.org and arrange for a free and confidential appointment with a SCORE Counselor.

Annual Dinner
Saturday, January 31 6:30pm
Williamsburg Lodge

During “A Night of Intrigue,” guests will step into the sophisticated world of James Bond to savor martinis – shaken, not stirred. The elegant evening will feature a cocktail hour, full course dinner and dancing. Music will be provided by The English Channel, a premier British Invasion rock-and-roll band.
Tickets for this must attend event are $85 per person. Tickets are limited, and advance purchase is required. Please send in the order form on your inviation or call the Alliance at 229.6511.

Job Fair
Wednesday, February 18, 10am – 3pm
Woodlands Conference Center, 119 Visitor Center Drive

This annual event offers job applicants the opportunity to submit applications, meet, and interview with representatives from many major businesses and organizations in the area.
A limited number of exhibit spaces are still available and all area employers seeking workers are invited to participate.
$350 registration fee includes a reserved exhibit space, five hours of prime recruiting time and the opportunity to recieve job applications from hundreds of potential employees.

Intersted? Call the Alliance at 757.476.7323

Remember the expression, “good help is hard to find”? There is a heavy competition for talented workers in most locations and specialities, and the “best of the best” employees know it. If they’re unsatisfied with thier current job, they have no qualms about looking for something better.

Keeping motivated, productive employees loyal is a critical concern for small business owners, since they play a key role in the growth and success of the enterprise. A survey by Robert Half International, an independent research firm examined the reasons that “top” employees: those considered good performers by their bosses, left the business. Here’s what they found:

• 39% Limited opportunity for advancement
• 23% Unhappy with management
• 17% Lack of recognition
• 11% Inadequate salary/benefits
• 6% Bored
• 2% Lifestyle change, such as moving
• 2% Other/don’t know

The message for business owners is clear, says Max Messmer, CEO of Robert Half. “Helping top performers reach their goals is essential to keeping them. The best employees are ambitious and may not stay in a job long if it lacks growth potential.”

Retaining good employees can be a challenge to small business, particularly when compensation or advancement is involved, but it’s not an insurmountable one. If promotions aren’t an option at your business, you can still find ways to reward extra effort. It can, but doesnt have to be money. If budgets ar tight, consider offering a more flexible schedule, larger workspace or, more convenient parking. Praise should be more frequent and personalized, but it does not have to be costly or time consuming. A simple thank you note can be an effective motivator.

Take the pulse of employee perceptions in your business. Are they happy doing what they do? Ask their opinions on the work environment and changed that might enhance thier comfort of performance. Think creatively and be open to suggestions.

Also remember that like any other important business asset, employees require their own form of care and maintenance. Bringing in temporary help during crunch times is one way to east the workload and prevent burnout. Engage your employees in finding ways to add some fun to the workplace, especially for jobs that involve a lot of repetition. The resulting increase in morale and camaraderie will boost not only loyalty to your company, but also its productivity.

Submit your questions to SCORE Answers at info@scorewilliamsburg.org.

If you have questions about this or other business subject call SCORE 757.229.651or visit www.scorewilliamsburg.org and arrange for a free confidential appointment with a SCORE Counselor.

Grace and Bob Tubbs

Cedars of Williamsburg Bed & Breakfast

The Cedars of Williamsburg Bed and Breakfast is Williamsburg’s oldest and largest bed and breakfast, opening its doors in 1935 in response to travelers visiting Rockefeller’s newest project of the time; Colonial Williamsburg’s restoration. The Cedars traditions and reputation are deeply rooted in the region’s growth and history…the two structures were born by Dr. Henderson of the 1810 bricks recovered from a damaged Christopher Wren Chappel in 1930. As folklore has it, his son, Hunky Henderson, himself very involved in the local Chamber in his day, suggested what we now know as Grand Illumination to Colonial Williamsburg to boost tourism in what was then the holiday off-season.

As the Cedars sixth owners, Grace and Bob Tubbs apply their combined marketing, technology and business backgrounds to bear on familiar and popular Williamsburg hospitality icon.

In today’s economy, innovation, strategic partnerships, community events and technology play vital contributing and interlocking roles. The cornerstones of the Cedars business successes are ensuring a truly unique guest experience, community events/involvement, Internet marketing and strategic alliances/partnerships. This combined business and marketing toolset has thus-far resulted in numerous regional and local awards, high marks from our guests and staff and community accolades that significantly contribute to the Cedars business health in a difficult economic environment.

Our continued and future success lies in our ongoing and growing relationships with tourism and strategic partners; the Alliance, Busch Gardens, Jamestown/Yorktown Foundation, Colonial Williamsburg and the College of William & Mary. The Cedars strategic objectives, guest packages, community event initiatives and marketing/technology plans are highly influenced from their collective community leadership, focus areas and goals. In our humble opinion, working together in a supportive and consistent manner is the only way for a collective success for all of us.