FOR BUSINESS OWNERS: WHY YOU SHOULD PRODUCTIZE YOUR SERVICE & GET CLIENTS TO PAY UPFRONT

in #business6 years ago (edited)

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One of the ways to avoid your clients owing you is to productize your service(s). Products are paid for in advance before they're used. If you incorporate this model of paying upfront into your service business, you'll avoid the negative cash flow cycle.

How you bill clients for your service will determine whether your business have a positive or negative cash flow cycle. If you charge in advance, your cash flow will definitely be positive; but if your charge after your services have been rendered, you'll surely have a negative cash flow cycle - because clients are either owing you or they refuse to pay on time.

Entrepreneurs with positive cash flow cycle will always have cash to finance their businesses and keep them alive.

© Yinka Brand

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