The final day of January in Great Britain has 2 major cut off point days. Firstly , there’s the football transfer cut-off point date for the moving of footballers between clubs. There are two windows of opportunity in the year when football players can be transfered from one club to another.
Then the United Kingdom Government impose the same day for the submission of tax returns by people, self-employed workers and firms.
What’s so entrancing about these two cut offs is the comprehension of purchaser behavior. There is a exasperating media frenzy showing soccer clubs attempting to secure a new player right up to the last minute of the cut off point date. Sure they have had months to plan ahead and 30 days to conclude a real transaction but everything occurs last minute.
The very same phenomena happens with tax returns. Trained accountants work right up to the minute before midnight submitting these financial returns for clients.
Man’s nature is such that we leave vital issues to the last minute as we all know we shall be penalised if we don’t comply.
Now say you are working on a website project. In my previous experiences these projects drag on constantly as you try and source copy, photographs, testimonials and photographs from the client. It simply appears that they do not have the same level of urgency that you do. And your pressure is to finish the project otherwise you do not receive payment on time.
So to accelerate your cashflow why not impose a cut off point date? This will help the client concentrate on your project and complete on time. However there need to be penalties for not obeying the deadline date. How about 10 percent of the project charge for every day the client is late? Now that would certainly be the business catalyst to ensuire the client delivers punctually.
Whilst clients may object to this you’ve got to weigh up the way the client’s behavior has a unfavourable effect on your cash flow. It is certainly worth consideration and proves to the client you are taking the project seriously. These sorts of penalties aren’t un-common in industry. Take the construction and building industry. Sub-contractors are penalized for completing work outwith the cut-off point date.
Definitely food for thought as you plan and manage your cash flow this year.
Molly Jamieson writes for Adobe Business Catalyst partner Platonik. Their web site features examples of web shops using Adobe Business Catalyst.