089 – The Dumbest Mistake a Small Business Owner Can Make
First before I give it to you, what is the purpose of small business?
To serve people with your work, and make a profit.
Those two are intrinsically linked bc you cannot have one without the other.
You cannot make a profit it you are not serving people well
You cannot serve people if you are not making a profit.
They are both important, but I think the making a profit one takes precedence.
- If you are making a profit, you have the ability to fix any service issues you may have – and you will have them.
- BUT if you are not making a profit – as in Money – you don’t have the opportunity to work on your business to make it better.
Business is like Monopoly, when you run out of money – it’s game over. All the pieces go back in the box
Here then is the lesson – and the Dumbest mistake…
Business owners don’t make getting paid a high priority
Ignoring Accounts Receivable
Not having an Accounts Receivable system…is the dumbest mistake…
- Not sending out invoices in a timely manner
- Timely, as in before the work is even complete
- Asking for a deposit
- Don’t be the banker
- Choose your customers based on their ability and MINDSET to pay you
- All business is not good business – people that don’t pay you on time should not be your customers
- Not creating ownership of the Accounts Receivable process
How to make Accounts Receivable a priority:
- BE OK to Talk about money.
- Talk about payment terms in advance
- Invoice Timely – when you deliver the goods – Invoice upfront when possible – or ask for a deposit
- Create Recurring Revenue if at all possible – THEN make it automatic
- Get help – if you are not the bookkeeper type – Pay someone to help you
- Assign the Accounts Receivable so that someone OWNS it – SOMEONE MUST OWN THE Accounts Receivable WORK
- Be Kind – but be persistent
