The numbers game Getting your finances in order as early as possible can mean the difference between success and failure N ow that you are ready to turn your great business idea into reality you need to think about organising your finances to maximise your chances of success and minimise risk. And it is when you are starting a new business you are at your most vulnerable - 80% of start-ups fail within the first five years so a good financial plan will set you off on the right path. TAKE CONTROL OF YOUR CREDIT Making the sale may be the hardest part - but the transaction doesn't end there. If you aren't being paid upfront you will have to issue an invoice to the customer and your role will shift to that of debt collector. Don't give your customers time to forget about you - send the invoice immediately. Be sure to set out your terms clearly, including how soon you would like to be paid. Debtors will often seek to delay payment past the date you have provided, so take this into account. If you need to be paid within the 28 month, specify credit terms of a fortnight. The extra breathing space will save you much stress and give you time to chase up the payment, if necessary. If the agreed-upon date is approaching and the customer has still not paid, then a reminder by email or phone call is advisable and following up in this way is known as credit control. Another email might follow to let the customer know when the payment is overdue. If you think that regular check-ins with the customer will damage your relationship, think about hiring a bookkeeper or a virtual personal assistant to carry out these duties for you. If the debt continues to go unpaid you should write a medium- and then high-impact letter informing them of your right to charge interest and to hire a debt collection agency to pursue the outstanding payment more aggressively. The ability to check your customer's credit beforehand may save you a great deal of unpleasantness and allow you to adjust your terms accordingly. An old-fashioned book-keeping system with debit and credit columns works best