Switching Customers from monthly billing to weekly billing

Discussion in 'Business Operations' started by bob the builder, Jun 16, 2012.

  1. Jimslawncareservice

    Jimslawncareservice LawnSite Platinum Member
    from mn
    Posts: 4,133

    Now I know who's bank account to hack!! J/k

    It sucks pay check to pay check. It happens to a lot at one time or another.
    Posted via Mobile Device
     
  2. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    I'm just surprised at how many seem to run there businesses that way. it's one thing to run your personal life that way but when your running a business with employees you need to be smarter than that.

    personal or business you should always have something saved up, a cushion to fall back on.

    unfortunately too many in this day and age seem to prefer to live above there means. those video games, movies, starbucks coffees are more important than saving for retirement or saving period.
     
  3. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    Buying materials for jobs and having some float.
     
  4. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    doesn't matter what your spending the business money on. you should never be emptying out the business account. there should always be a certain amount or more in it.
     
  5. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    Takes money to make money and I will spend it in a heart beat on the right job.
     
  6. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Posts: 11,804

    Good suggestion. And definitely some truth to it.

    Because they aren't charging enough to begin with so they think cash flow is going to solve their problems.

    Then you have idiots like John Allin spouting BS to the same effect. Cash flow is more important than profit. But we all know where he ended up, but he didn't have cash flow or profit.

    No doubt that cash flow is VERY important. And at times it can be more important than profit. But not all the time.

    That's the way mine work. But I don't charge per cut. All contracted services are charged at the beginning of the month in which they will be performed. Just like insurance, phone, etc. Extra charges go out at the end of the month, or when finished.

    Good advice right here. Listen good.
     
  7. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    Cash flow is King but without profits, your cash flow will be negitive.
     
  8. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    yes but i wouldn't empty or go below a certain amount in my business accounts for anything. just like i wouldn't empty or go below a certain amount in my person accounts for anything.

    your type of thinking is part of why the US is in the shape it is in. people spend, spend, spend, thinking the money will come in for it later. when it should be reverse. if you don't have the money to back what your buying then don't buy it.

    i pay my credit card off every single month. if i don't have the money to back what i'm buying i don't buy it. regardless of the fact that i could put it on the credit card and then come up with the money later.

    i spend and live below my means. if the money isn't in the bank to back a purchase i do with out it. and i don't let my accounts go below a certain amount for anything. so if i have $20,000 in the bank and my limit is to keep no less than $10,000 in the bank i'm not gonna buy anything that costs a penny more than that $10,000.
     
  9. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    My type of thinking? I think you have me confused with someone else. :laugh:

    On the other hand I am not some chicken little either. Operating capital is exactly that, money I can use to operate my business.

    After doing my due diligence, I will spend it on materials that are to be sold to qualified clients. :waving:
     
  10. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    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.
     

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