Cash Flow for Tradies!
Hey, Hey Super Tradies,
Coach Brian with what you need to do to be cash flush!
Christmas is on its way so annual shutdowns will start, probably from 20/12 perhaps 3 weeks later. You need to start working on your cash flow today!
Invoicing…
Invoice whatever you can and do it NOW! Don’t leave it to the weekend or tell me your bookkeeper does it at the end of the month!
That is way too late, and the cash flow boat will have left the harbour.
Three things you need to do…
1. Invoice immediately on completion of the job
2. If it is with a consumer carry your mobile eftpost machine everywhere…and use it every time you finish a job.
3. Got bills unpaid? Get your bookkeeper to start chasing those unpaid accounts, get serious, it is your money!
Now make yourself a promise…this is what you will do from now on in your trades business.OK I promised you some valuable tips to help you now and moving forward.
Number 1:You have a big job on the go, you’re about 60% completed but with Christmas happening it won’t be finished until late January and that is the accepted completion date…familiar situation?
Step 1: Invoice the client for 40-50% of the job price and, yes I know it was quoted payment on completion.Step 2: Ring or email the client and use these words“Hi Brad, I’ve just sent you an invoice for part of the Smith Street job. I know cash is tight for everyone after Christmas, especially January so I thought this might help you schedule things, I can gift you a 3% 7 day payment discount if that would be valuable to you.”
Or:
“Hey Brad, sent you an invoice for the Smith St job, I reckon it looks pretty schmick. Can you do me a favour a review on Google and Facebook, links are below. Oh Yeah by the way on the invoice I can gift you a 3% 7 day payment discount if that would be valuable to you.”
Now the important words here are help you schedule and gift you. So have a play around with this change the words a bit and let’s get some cash in.
Number 2:When you send an invoice include a gift that is personalised and customised to the recipients’ current needs or preferences. It could be a coffee club card, favourite football player picture, movie tickets…pretty much anything just make it relevant. Don’t forget a note!
“Hey Brad, just a quick note…I’ve sent this month’s invoice to you but here’s a copy but…I know you’re a coffee addict like me so enjoy this blend from 63 Degrees in Highton”
Number 3:Well, this is for you from now on. On very job negotiate an upfront payment or instalment’s, don’t leave it to the completion of the job for an invoice. Especially for larger domestic jobs you need to get some cash in early. It will actually make it easier, on a $1,500 job $500 on start, $500 when ‘x’ is completed and balance when signed off as complete. Make sure you always say BALANCE on completion, not $500, if you don’t you get into strife with no you said $500 not $650 (extras that the client wanted).
OK Super Tradies Coach Brian Signing Off!