It's no secret, it's just plain common sense
Do you struggle to get final payments in from jobs you complete? Do you want to solve the problem? Do you hate begging to be paid?
Bet you answered Yes three times there!
This is a typical problem for the small business owner. Can I put it really straight to you why this is a problem we all experience?
Well, you see, one day a man who had lots of money met a man who had lots of experience. When they parted, the mane who had had lots of money, now had lots of experience and the man who had had lots of inexperience left with....you got it, lots of money!.
So there it is. Straight up like I said. It comes down to experience. as an SME, you don't have time to spend hours each day studying. If you did, we would all have Phd's. So, most of your knowledge comes from hard earned experience, doesn't it?
I must admit, I am a lazy person when it comes to repeating mistakes. I simply hate mistakes. So I make very sure I don't ever repeat them. It only takes one sting to make me learn and never forget.
How many times have you been stung, by not being paid for work you have done?
Whilst you cannot cure this 100%, you can make a 95% improvement. Here's what you must do:
Implement a deposit system for all quotes issued. NO deviations. So all new quote syou issue, can only be converted to "order status" once the deposit has CLEARED in your bank.
Next, implement some milestone payments.
20% on delivery of all materials.
Finally adjust your last payment as a balance on completion of the work. You can split this into two parts. First, 10% when the job is complete. Then the final part say 30 days later, this gives a huge benefit to the client. They only pay the last amount once the job is 30 days old. Obviously by then, they would have raised any issues which you should have resolved. Final payment should be a breeze now.
The more money you collect up front, DURING the process of completing the work, leaves less money to argue about once the job is complete.
Obviously, I am talking about straight business here. If you want to operate as a crook then get the hell of my page. So this applies only to small business owners whose intentions are good.
If you liked what you read here, please head over to my blog Make more money 4 less hard work
Bet you answered Yes three times there!
This is a typical problem for the small business owner. Can I put it really straight to you why this is a problem we all experience?
Well, you see, one day a man who had lots of money met a man who had lots of experience. When they parted, the mane who had had lots of money, now had lots of experience and the man who had had lots of inexperience left with....you got it, lots of money!.
So there it is. Straight up like I said. It comes down to experience. as an SME, you don't have time to spend hours each day studying. If you did, we would all have Phd's. So, most of your knowledge comes from hard earned experience, doesn't it?
I must admit, I am a lazy person when it comes to repeating mistakes. I simply hate mistakes. So I make very sure I don't ever repeat them. It only takes one sting to make me learn and never forget.
How many times have you been stung, by not being paid for work you have done?
Whilst you cannot cure this 100%, you can make a 95% improvement. Here's what you must do:
How to improve your cashflow IMMEDIATELY
Implement a deposit system for all quotes issued. NO deviations. So all new quote syou issue, can only be converted to "order status" once the deposit has CLEARED in your bank.
Next, implement some milestone payments.
20% on delivery of all materials.
Finally adjust your last payment as a balance on completion of the work. You can split this into two parts. First, 10% when the job is complete. Then the final part say 30 days later, this gives a huge benefit to the client. They only pay the last amount once the job is 30 days old. Obviously by then, they would have raised any issues which you should have resolved. Final payment should be a breeze now.
The more money you collect up front, DURING the process of completing the work, leaves less money to argue about once the job is complete.
Obviously, I am talking about straight business here. If you want to operate as a crook then get the hell of my page. So this applies only to small business owners whose intentions are good.
If you liked what you read here, please head over to my blog Make more money 4 less hard work
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