This blog post is authored by Yan Lazarev, CEO & Co-Founder of Gaviti
Every entrepreneur dreams of building a business that will be a global success
The ability to acquire multiple clients is a great validation of business success and a source of great pride to the founders.
Business growth brings a lot of new challenges that are completely different from the challenges founders have to deal with in the beginning and at other early stages of their business.
A crucial part of a business’ success is the ability to get paid efficiently by its clients.
For companies who target retail clientele, there are plenty of solutions… cash, credit card, PayPal or crypto, before goods are shipped off or the payment goes through at the register. For companies who target enterprise clients and must sell on credit, things are little more complicated…
Closing the deal is just the first step to getting paid!
After agreeing to the terms and delivering to the client, you must bill them accordingly and follow up to make sure the invoice was received, is correct, and scheduled for payment.
It sounds easy and it is if you’re dealing with 5 clients. When your business is good enough to get 3000 clients, even simple things become a challenge. Just imagine the size of the client success team it requires to deal with such a large amount of clients and how much office space this team requires.
The reason startups disrupt traditional industries is not because they have more resources or better people, but because they are designed to work smarter using the best technology available.
For everything that is task oriented, recurring and can be modeled, automation and optimization are pivotal to success.
Collection process automation can be created on top of business ERP either via custom coding or adding custom flows with BI tools, or by getting dedicated solutions designed for collections process optimization.
Before implementing any of the options it is important to remember a few key elements to allow your company to master the receivables collections task:
Dealing with large client volume might be a rich man’s problem but overcoming the challenges that come with it separate good companies from great companies. Acknowledging the challenges and sticking to best practices that will solve them will help you to stay on the right side of this equation.