Stop Waiting for the Money You’re Owed
One of the things that used to really tick me off was when people didn’t pay.
I mean, as a tradie, sometimes it’s like getting blood out of a stone to get paid. So I used to get worked up and worked up and worked up. Whenever I ran that aged receivables report and saw the thousands of dollars I was owed – it used to really really really grind my gears and get me worked up.
So I started to try to separate my feelings and I realised that a lot of businesses do run an aged receivables. It’s common practice. It means you’re doing something right (not wrong). Having a little bit of debt behind you is normal – it’s part of the trade.
So instead of calling up clients in a foul mood, I created space and I started to look at it from a bigger picture. I then implemented a five-step process to make sure that my cash was on point from day one.
- Once the quote has been approved, I’ll let the customers know that I’m gonna need payment on the day it’s just a subtle little touch on it.
- When we do a booking call, we’re calling the customer to book that installation and we’re also touching on it again how we need payment on the day.
- An automated invoice gets sent to the customer at lunch time or in the morning whenever you want to program it.
- When the guys or myself complete the installation, we remind them then. Nine times out of ten you’ll get payment then.
- After the job, the office team will do a follow-up phone call asking them about the job and if they could please make the payment.
Since I implemented those 5 steps, I’ve never had a big problem with cash flow. So start to think of ways to educate yourself and implement new strategies to increase your profit and fix any issues that are affecting your business today.