The Push and Pull of Both Doing and Running The Business
Managing a small business often means being pushed and pulled at the same time. You are frequently focused in two different directions each requiring equal amounts of time and resources. Small business owners often find this feeling arises from the need to both “Do the Business” and “Run the Business.” “Doing the Business,” is generally those activities which directly impact Revenues, while “Running the Business,” consists of activities which indirectly support Revenue. Sales is a direct activity; Back-office operations are indirect activities. For most small companies, revenue growth is paramount and the back-office is often a scramble.
PTSI has been working with a bus company since the Client’s inception in 2007. The company provides transportation for public and private school districts and community groups in their market. Over the years they have grown from a couple of buses when we started Factoring their receivables to over 100 buses today. To achieve this success, the owners’ focus has been on revenue growth and profitability. In other words, they have concentrated on “Doing” the business. Unfortunately, they found that the “Running” portion was somewhat neglected.
PTSI determined an efficient billing process was missing. The Customers had specific requirements regarding format and information which were not always met leading to inconsistencies and frequent re-invoicing. The result was a delay in the payment process. Longer payment cycles resulted in higher factoring fees to the Client and reduced cash flow. PTSI was able to offer a solution!
PTSI suggested that our Client sign up for our Back Office Management Program. First, we established the method by which our Client would provide the supporting documentation for the billing process. Then, we worked with individual Customers to determine the specific information and format that would facilitate the fastest payment of invoices. PTSI established relationships with the people needed to make decisions and get invoices paid. All parties agreed that email was the most efficient system for gathering and sharing information since it provides a handy tracking method.
Today, PTSI receives all back up detail from our Client by email and sends out invoices and supporting documentation by email to our Client’s Customers. Our Client has an online record of all invoices, faster cash flow and lower factoring fees. Customers receive accurate invoices with backup ready for payment. The cost of the service was more than covered by the savings on Factoring fees and far below the cost of allocating resources in house. At PTSI we are always on the lookout for ways to help our Clients.
Premier Trade Solutions, Inc., providing out of the box Financing and Service solutions for the small business.