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:

1. BE OK to Talk about money.


2. Talk about payment terms in advance


3. Invoice Timely – when you deliver the goods – Invoice upfront when possible – or ask for a deposit


4. Create Recurring Revenue if at all possible – THEN make it automatic


5. Get help – if you are not the bookkeeper type – Pay someone to help you


6. Assign the Accounts Receivable so that someone OWNS it – SOMEONE MUST OWN THE Accounts Receivable WORK


7. Be Kind – but be persistent