Switching Customers from monthly billing to weekly billing

[Weekend cut easymoney]

Require credit card info as a 'safeguard' in case they take a long time to pay...tell them you will charge their card when they are 2 days late...
..tell them they can continue to get the same price if they continually pay on time...otherwise, they will have a price increase-state it in the contract-

I do a fair amount of monthly billing on credit cards and love it...I pay a fee, but have no issues on those customers paying late

[Duekster]

Originally Posted by yardguy28

I'm not trying to be personal or direct my statement directly at you.

but I'm sticking by how I manage my money. and that's keeping a min amount in all my accounts at all times and NEVER going below that amount. whether its business or personal.

I could go a whole year or better and never "need" to receive a cent from a single client.

Good for you. That is a position most of us would like to be in with the exception of not collecting an invoice.

[cpllawncare]

Originally Posted by yardguy28

I must be weird. I've had no less than $20,000 in the business account at all times for at least the last 3 years.

it's not good business practice or personal for that matter to let things run dry working pay check to pay check.

I totally agree, but if you didn't have 20,000 to start with it takes time to build up to that, I'm at about 10,000 now but 20 is my next goal. One problem is I have gone through a series of expansions in order to grow the business so I've let my balance get a tad low but I know when to put the brakes on and go back to building cash, funny thing is after each expansion the rebuilding process gets shorter and shorter because I now have expanded capabilities therefore can go after more profitable business.

[Mark Oomkes]

Just a thought for the OP, you could always try adding more mowing crew members, I hear this works great for increasing profits. Or should I say revenue? The heck with the bottom line.

[yardguy28]

Originally Posted by cpllawncare

I totally agree, but if you didn't have 20,000 to start with it takes time to build up to that, I'm at about 10,000 now but 20 is my next goal. One problem is I have gone through a series of expansions in order to grow the business so I've let my balance get a tad low but I know when to put the brakes on and go back to building cash, funny thing is after each expansion the rebuilding process gets shorter and shorter because I now have expanded capabilities therefore can go after more profitable business.

yes it takes time but my point is NEVER deplete what's in the account.

come up with a certain dollar amount you will NOT go below and stick to no matter what.

businesses should never have to have each and every invoice paid on time each and every month to cover all expenses. you should be able to go a little bit without receiving a single cent from a client. now how long that time frame is will depend on how successful your business is and how successful you want it to be. but you certainly should NEED cash flow 12 months out of the year or NEED to convert from monthly invoicing to weekly invoicing to cover expenses.

[32vld]

Originally Posted by Mark Oomkes

Just a thought for the OP, you could always try adding more mowing crew members, I hear this works great for increasing profits. Or should I say revenue? The heck with the bottom line.

How does increasing profits hurt the bottom line.

Is this something that they teach at Wharton's MBA program?

[Mark Oomkes]

Originally Posted by 32vld

How does increasing profits hurt the bottom line.

Is this something that they teach at Wharton's MBA program?

Your statement contradicts itself.

Nice attempt at trolling, though.