Keep In Touch Building a bigger and better business

If you started your own business after a stint in the corporateworld, you may find that your former employers make primeprospective customers. Gerry Baker knows that firsthand: When heformed Corporate Consulting Inc., a crisis management publicrelations firm in Edmond, Oklahoma, one of his first clients washis most recent former employer.

"You have significant advantages [selling] to your formeremployer," Baker says. "You know the system, the companyway." But that inside knowledge of the company will only helpyou get your foot in the door. "There may be a honeymoon for awhile, but at some point, you're going to be expected toperform as good as or better than anybody else out there."

It's very important for you to recognize that yourrelationship with the company has changed, Baker says. As asupplier, you may be dealing with different people, some higher upon the corporate ladder, than you did before. He also notes thatsome of your former co-workers may see you as a threat to their jobsecurity, and their bosses may not be entirely comfortable if youhave overt personal relationships with company employees."This takes a great deal of sensitivity and diplomacy,"says Baker, who stopped socializing with his former co-workers."If they view you as a threat, they can be quite harmful toyou."

If, on the other hand, your former co-workers see you as anally, they can be extremely helpful. But don't take this as anindication that you can take it easy. Don't expect to be toldcompany secrets or to be able to neglect the account and continueto retain it. "You go into the relationship with an edge, butthat just gets you your first assignment," Baker says."Your future depends on the quality of product or service youprovide."

Fast Cash

A simple but often overlooked technique for improving cash flowis to coordinate your billing system with your customers'payable procedures. Submitting your invoices at the right time withcomplete information will often speed up payment, particularly withlarger companies, says Vicki L. Helmick, who heads up her ownhomebased accounting firm in Casselberry, Florida. Her adviceincludes:

• When setting up a new account, call to find out what thecompany's procedures are. Ask what you can do to ensure promptpayment.

• Be sure your invoice is easy to read and includes all thenecessary information. Clearly identify your products and services,your terms and where to send the payment. Also indicate anycustomer reference information, such as a purchase order number,that will help your client's accounts payable departmentdetermine the validity of your invoice.

• If you're billing on a retainer, find out when checks foryour type of service are written and time your invoices to arriveshortly before that date. Often, large companies have particulardays of the month when checks are written for certain types ofpayables, Helmick says. If you miss their cycle, you may have towait weeks or another month to get paid.

• Be sure you're sending your invoice to the correct personand location. Some companies, for example, may require thepurchaser to approve invoices; others may pay faster if your billgoes straight to accounting.

• Bill on delivery of the product or service. "That'swhen the appreciation of your work is highest," Helmick says."When they're thinking about you in a positive way,they're more likely to process your invoice faster."

Special Delivery

Being homebased offers many advantages, but one area that couldpresent a drawback is shipping and receiving. Even the smallestoperation will occasionally need to deal with a courier or freightcompany. And though you'll probably never be viewed as a majorcustomer, there are things you can do to make the process moreefficient and less disruptive.

Perry A.Trunick, chief editor of Shipping & Receivingmagazine, says homebased businesses are faced with two primarychallenges when it comes to dealing with freight companies: One istheir lack of volume, which means they don't have much clout;the other is their residential location, which makes deliveriesless predictable. Even so, freight companies--particularlyovernight and package carriers such as UPS, Federal Express andeven the U.S. Postal Service--are aware of the potential of thehomebased market. Trunick advises collecting information from anumber of freight companies so you can choose the most appropriateservice at the best price for your outgoing documents and packages.Be sure to check out local and regional companies as well as thenational carriers--you'll find them listed in the Yellow Pagesunder headings such as "courier services," "aircargo," "delivery services," "packageexpress," "trucking" and "motorfreight."

Also, don't buy more service than you need. For example,most overnight companies offer the choice of next-morning, next-dayand second-day service. Morning delivery typically costs more, soonly use it when you absolutely need it.

For incoming shipments, Trunick suggests letting your suppliersknow your business is homebased and doesn't have a loadingdock. That way, they can package materials appropriately and choosea carrier that's set up to make residential deliveries.

Another option is to take advantage of mail drop locations thathandle shipping and receiving for you. Check out several in yourarea; although many are part of national chains, the services theyoffer may vary. It's also possible, Trunick says, thatthey'll agree to a small volume discount if you ask for it.

Corporate Consulting Inc., 1802 Canyon Park Cir., Edmond,OK 73013, (405) 359-6067

Vicki L. Helmick, 1312 Sterling Oaks Dr., Casselberry, FL32707, (407) 695-3400

Shipping & Receiving, 1100 Superior Ave., Cleveland,OH 44114, (216) 696-7000

Jacquelyn Lynn is a freelance business writer in Winter Park,Florida.