Why was the model created?

Shortage of cashflow caused by late, or worse, non-payment is a serious  issue for business owners. Supporting small businesses at conferences, and through podcasts and webinars, I wanted to deliver a model that was simple yet effective in helping address the challenges of supplying customers successfully and getting paid.

Small business owners frequently recount how using the tips  has resulted in them changing their way of doing business, improved their trading relationships, and reduced payment delays resulting in improved cashflow. In a nutshell, that’s why it was created.

What is It?

The model has been developed through my many years of credit management experience, and of working with small businesses. It uses a series of five questions and basic tips to help small businesses increase their chances of getting paid promptly, and to reduce the risk of non-payment.

What are the components of the model?

Five questions: Why, who, when, how, and where help address the challenges of supplying customers on credit from cradle to grave. They follow through the journey of identifying the customer, establishing the right relationship, chasing payment, and escalating collection activity if that becomes necessary.

Who is it designed for?

It is primarily designed for sole traders and micro-businesses but the principles apply across businesses of all sizes. It is also a great fit for organisations wanting to support the small business community or their own small suppliers.

How is it delivered?

It can be delivered in a single session, or as a series of five presentations. Delivery can be virtual or face-to-face, and utilises examples and anecdotes to reinforce the messages. It can also be delivered in written form and can be co-branded.

The model is ideal for any organisation supporting or serving the small business community, and for large organisations who want to ensure their small suppliers are sustainable and flourish.

The Five-Step Model in use

The Business Travel Association  (BTA) published a guide for its members  in November 2023 with the title Tackling Payment Culture. The document was part of  a strategic campaign to protect small to medium-sized enterprises (SMEs) from the detrimental effects of delayed payments from larger corporations, in collaboration with the late payment campaign group Good Business Pays (GBP)..  It includes extracts from the Five-Step Modal and  can be  found here:  https://www.thebta.org.uk/mint-project/uploads/718451557.pdf

How do I find out more?

For more information or to discuss, please contact me at philip@philipking.net or 07785 577877