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Small business telephone answering service
Lynette Green

This week in Virtual Head Office – A telephone answering service and mail handing – how one small business relocates but appears to stay at the same business address

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A small business who we’ve worked with for the past 5 years has relocated this week to London.  He has used our mailing address and telephone answering service ever since he started up his cleaning business, to give him a presence in the Bury St Edmunds area.  He lived in a nearby village and didn’t want to give out his home address.

His cleaning business was aiming at the commercial market and not really looking for domestic clients at all.  He wanted a dedicated office address to give his small business the appearance of being a bit larger and more entrenched than was actually the case to give his potential client base confidence in his business in order to help him win some corporate business.

Over the last 5 years this small business has grown substantially, both in terms of its number of employees and in terms of the volume of business they have won, some of which I’m pleased to say can be attributed to telemarketing campaigns which we have run for them, the rest through their own business development activities.

Our telephone answering team are always busy speaking to this clients callers, who may be new business enquiries, existing customers calling with queries or the cleaners employed by this small business.  The calls are always varied and frequently urgent.  This business owner is a very proactive busy person who is always on the move, whether he is visiting clients, out on meetings securing new business, managing his team or hiring new staff.

For a small business like this a telephone answering service means that there is a central point to coordinate his day to day activities.  His team and his customers all have his mobile number, of course, but the fact is they are unlikely to be able to actually catch him on it, and as he’s so busy if questions can be dealt with by someone else he would rather not have to call back.

He will often phone in or email our team to make us aware of his movements for the day, so that we can tell callers that realistically he won’t be able to return their call for 3 hours if they want to speak to him personally.  This really helps to manage the expectations of the caller and helps give his business a reputation for providing good customer service.  The answering service is bespoke so if he wants to let us know for example that there is a specific message for a particular person should they call we are able to relay that for him, so that quite often they don’t actually need to speak to him in person.  We just send him an email making him aware of the conversation so he is up to speed with what has been said, if he needs to contact this person further then he can do.

He currently comes in to the office when he is passing through to collect his post which has come in to his business address.  We always enjoy having a catch up with him when he comes in as he’s always got so much going on it’s really interesting to hear about.

Over the last few months he has been talking more and more about the business that he has won in London, as well as in Suffolk and he has been spending more and more time there.  Recently he made the decision to relocate to London, but to continue with the work that he is doing in Suffolk, which is now quite well established and able to continue with less day to day management from him.

Although he is not local enough to pop in any more to collect his post it doesn’t actually affect the virtual office service he uses.  Instead of coming in to collect, we will be forwarding the mail for him from now on.  The telephone answering service will remain entirely unchanged.  He will still maintain the telephone number that he already has and we will still continue to answer calls for his business in his company name and as far as they are concerned they are speaking to someone sitting in his office so he is very much maintaining a local business presence.

Going forward he may decide to also purchase a London telephone number, which can also be diverted in to our team so that he is able to give the appearance of having two offices.

For this small business owner using having a virtual office means that he is able to carry on with business as usual in a geographic area that he is now well established in, whilst being able to spend more time where he is needed more looking after those accounts which are still in their infancy and still need a lot of day to day involvement.

We’re really excited for him as he continues to expand his business and feel really pleased to be part of the team.  The only thing we’re a little bit sad about is that we won’t be seeing him in person now that he won’t be calling in to collect his post any more, but I’m sure he will be calling in to say hello when he’s in the area.

Credit Control
Lynette Green

Credit Control: How To Get Another £20k In Your Business Bank Account

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According to research by Tungsten, the average SME is owed £40,857 in unpaid invoices, with £20,937 of that total amount being overdue.  An amount which, according to the 1000 companies surveyed, places 1 in 5 of those businesses at risk of insolvency.

Even if it doesn’t put your business at risk of insolvency it certainly has an impact on your cash flow.  A recent article in the Telegraph summed this up well, saying that ‘Late Payment doesn’t just affect cash flow, it affects a small firm’s appetite for investment and growth’

Not only does this have a detrimental effect on finances, but it also wastes time, as the average small business spends 130 hours per year chasing invoices.

So what can you do to minimise the risk in your small business?  The answer is you need to get an effective credit control procedure in place.

Here are our tips for keeping on top of credit control and cash flow in your business.

  1. Do what you can do to avoid giving credit wherever possible. If it’s possible for you to charge up front, or at least get a deposit then do so. If you never give someone credit they are not going to pay you late.
  2. Invoice promptly. Send invoices straight away as any delay there is likely to cause a delay in payment.
  3. Clearly state your terms and conditions on the invoice.
  4. Also on the invoice clearly state your bank details and how you want the client to pay.
  5. Make it as easy as possible for your client to pay. Automating the process by setting up a direct debit can be very simple for both the client and you as a business owner. We use GoCardless to collect direct debit payments and we have found the service to be invaluable in terms of saving time spent chasing invoices for a nominal fee.  You will also be alerted if any of your clients cancel their direct debit arrangement which can alert you to any potential problems early on in the process.
  6. Ensure that someone, either a person within your organisation, or an outsourced service partner has responsibility for credit control. This incumbent should not only have dedicated time set aside each week to devote to your credit control, but they should also understand the importance of this role to your business.
  7. Don’t automatically assume that you are the best person to take on the task of credit control for your business. Often there are advantages to delegating or outsourcing credit control to either a credit control agency or a Virtual Assistant, which can include:
  • freeing up your time to concentrate on more profit making activities
  • separating you from the process of chasing the client can be good as business owners can often feel embarrassed or awkward about chasing money (although you shouldn’t).
  • It makes sure that it does get done every week, as as the business owner you may find yourself pulled in other directions.
  1. Be systematic. It’s important that you have a clear credit control procedure in place that you follow to the letter. Following a system, and keeping a record of this has a number of benefits:
  • You know exactly where you are in the process at any one time.
  • The process usually works, preventing invoices becoming overdue is always the best way.
  • In the worst case scenario, should you need to take this to a debt recovery company or take legal action you have shown that you have followed a legitimate process.

A procedure for a business with 30 day payment terms would be something like this:

  • Day 1 send your invoice
  • Day 14 make a courtesy call to check that invoice has been received and to confirm when payment is due.
  • Day 28 make another call to remind your client when the invoice is due.
  • Day 37 send a first gentle reminder that the invoice is overdue.
  • Day 44 send a stronger reminder asking for the invoice to be paid within a particular time frame to avoid further costs being incurred.
  • Day 51 send a final reminder letter giving 7 days to pay before legal action is taken.

We use Kashflow for our accounting software and this has sample letters within it which can be sent at the click of a button and also recording everything that has been sent.

  1. Throughout the process it’s important to maintain good relationships with your client. Not only will they be more inclined to pay promptly or even early in some cases if there is a good relationship, but it’s also important for future sales with this client, or anyone else they may recommend you to.
  2. Regularly review payment ledger. Make sure if someone has paid that you are not continuing to chase them in the interests of maintaining a strong relationship.
  3. Make sure your business maintains a good reputation for paying suppliers promptly, not only does this give you the higher moral standing, but word gets around in the small business community and you don’t want to be known as someone who is a late payer as this weakens your position when chasing late payments from others.

If you’re not already following the above steps if you do introduce them will have a dramatic improvement on the cash flow and financial health of your business, but should you have done all of the above and you are still owed money don’t hesitate to take legal action.

If you’ve found this article interesting please feel free to share with anyone else you think would benefit.