Business Plan

[readydave8]

Prompt billing is the one main thing that has helped me with collections. I used to let job records pile up, mail out bills once a month.

Now I do a lot of small jobs, I like to give the customer a bill before I leave the job. I don't know why this helps but it does.

 

[Kdog76]

My post was serious, I only saw the jest after I posted it.

My post was more on the idea of how do you budget when you do not know when you will be paid?
My "cushion" was used up when I was on orders for the reserves (they don't pay nearly as well). Since then it has been month to month, do the work, bill the work, and hope they pay on the due date. Suppliers are always paid first. The problem I run into is, work is slow so revenue is down and not consistant but the costs are the same or higher, and I have no employees.

Sorry no BMW's or plasma tv's here, I still have the old 50" projection from 15yrs ago and it works fine. No extra vehicles, work truck and family car.

I dumped the "big house" before the market crashed so I have a reasonable mortgage and the only other payment is my truck which only has a year left.

So how do you plan this? I would much rather have a plan instead of hope.
No matter how much you try, you still have no control over when they will cut the check.

You are right. I seem to figure that it can all go out the window as soon as the money is gone / or work dries up. I would think one man shops should still be hanging in there, but each situation is different.

As far are insuring you are paid, I give 15 days, then at 30 days past I will send a reminder with 30-day lien notice sent by certified mail. That seems to do the trick, but I only do that with customers I'm not afraid to lose. If they are good customers, I can wait the to 60-90 days but then I'm not afraid to charge monthly interest, and tack on a $10.00 minimum. If it goes 90+ days out maybe they are not as good a customer.

And sounds like you are doing everything right to keep personal expenses down to minimum. That's been my approach. It's shame to have to deny yourself some of the nice things in life, but I would rather keep my business going vs. paying myself too much. Lot a like of guys here, I think we're happy just to have the bills paid each month.

 

[N844AA]

Prompt billing is the one main thing that has helped me with collections.

Even though we sell wiring services, I look at generating invoices as the real business I'm in. Just like the business of a tank is to fire shells from it's cannon, our true purpose is to fire invoices at our customers. The faster and more often you do this, the better off you are. All this electrical stuff is secondary, it's just what happens before I swing the gun turret around and blast an invoice towards the customer.

 

[khixxx]

A business plan is essential when you are seeking a loan or capital investment by others. If you don't need these things I wouldn't say a formal business plan is essential, but a general plan or idea of where you want to go is obviously worth some thought.

+1

I also wondering if anyone really pays attention to economic indicators that might indicate a slow down or a pick up.

 

[fireryan]

Do a google search on "fast trac new venture". There is lots of buisness info there