Growing into BANKRUPTCY… $3M Business can’t get PAID!

Prioritize liquidity: Ensure sufficient cash in the bank to comfortably operate and grow, aiming for at least one month's worth of revenue.

Improve collection processes: Implement stricter payment terms, collect a larger deposit upfront (e.g., 50%), and demand full payment immediately upon job completion after inspection.

Utilize payment on file: Offer credit card or ACH payment on file options for customers to simplify and expedite payments, even if it means absorbing processing fees or raising prices slightly.

Automate overdue invoice follow-ups: Set up automated text messages, emails, and phone calls for overdue invoices, harassing customers until payment is received to minimize outstanding receivables.

Standardize operations: Focus on simplifying and standardizing all business processes, from sales calls to invoicing, to build efficient 'systems' without needing complex, custom solutions.

Don't fear payment processing fees: It's better to pay a small processing fee and get paid faster than to incur significant holding costs and stress from uncollected revenue.

Focus on one constraint at a time: Identify and resolve the biggest bottleneck in your business (e.g., liquidity) before moving on to others like leads, labor, or leadership.