The winter season is almost upon us.  Soon, you will be invoicing customers for services rendered.  When should you start worrying about collecting your money??  NOW is the time to plan your collections activities.  Starting early will significantly reduce your outstanding balances due you from customers.  Planning is part of the process – start planning now.

Below is a timeline (supplied as a courtesy from my friends at Steinburg, Stearns and Cruz).

  RECOMMENDED COLLECTION TIMELINE

You need to plan these activities now in order to avoid problems going forward.  Review your contracts with your customers and become familiar with what you have agreed to in terms of payment.  If you have not already done so – consider sending a letter to ALL your customers outlining your credit terms in the absence of anything formal already dictated in the agreement you have executed with customers.

Cash is king in our business.  Cash flow is #2.

Remember – lack of profit is generally not what leads companies to the brink of oblivion.  Lack of Cash is what causes serious problems.

For more information on having a professional handle your collections activities – I recommend www.steinbergstearnsandcruz.com as they cater to service companies and snow contractors.

I back to traveling every week, not spending much time at home – but I am home for the Thanksgiving Holiday weekend.  Then off again on Monday.  I’m finding that contractors who want to grow – even in this weakened economy – are finding it much easier than expected.  Customers are applying pressure to conserve money, but they are not cutting snow removal out altogether.  They can’t do that.  The lawyers of the world will not allow it.  The insurance carriers won’t allow it.  Customers can cut back on grass cutting and janitorial services – but cutting back on snow plowing just makes it more dangerous out in the parking lots and on the sidewalks.  Of course, some cuts can be made – like not plowing a parking lot that is no longer used.  But, we (as snow contractors) can suggest this to our customers and end up saving budget dollars for the customer and creating good will with our customers by helping them conserve dollars.  The cutback won’t last forever as the economy will come back – and those lots will be full of cars again at some point. 

So – help the customer save some money now (without reducing services on parts of their property that need cleared), and make points with the customer.  Loyalty will follow these types of actions.

Think snow !!  It’s coming, for sure.