Tim Johnston, founder of BooksOnSite, had a cashflow problem experienced by many early stage companies.
“Early on you are just so desperate to keep all your clients happy that you are almost a bit afraid to upset them by calling and chasing for money.”
A turning point came around 18 months ago, when Johnston introduced a direct debit system for his clients.
Get business news first
Sign up to SmartCompany’s daily newsletter
“It was the best thing I ever did – I’m surprised you don’t hear more about it. When we get new clients on board and they sign up a contract, they also sign a direct debit agreement. We set it up through a third party because some clients are hesitant, but if they know it’s possible to call up and cancel at any time it alleviates those concerns.”
Read a full profile of BooksOnSite and founder Tim Johnston.