Let’s be honest, as a tradie in business getting clients to actually pay on time can be a nightmare. It’s even worse when you have to waste valuable time chasing those payments.
So how do you cut down on the stress and management of late paying customers?
Check out our tips.
Financial institutions seem to want more and more proof of income these days, which can make it tough on self-employed tradespeople who haven’t been in business by themselves for very long, or their financial records are a little out of date. Read more
If you work as a tradie, it’s important to have Public Liability Insurance in place. This is also one of the most well-known types of insurance. But what about Product Liability Insurance and why would it apply when you’re not actually manufacturing any products? For a lot of tradies, this is also an essential form of cover and for this reason it’s good to find out more about the definition of Product Liability Insurance and what it does for you.
For some tradies in business, sometimes cash doesn’t quite make it to the bank business account or financial accounts…
It seems from an initial perspective that this cash is beneficial in a number of ways. Yes it is great to have cash in your pocket with immediate purchasing power. Whilst this cash can be used for a bite to eat, buy whatever you need, clothes, or for a short break somewhere. Sometimes there is the view that the taking of the cash means a reduction in turnover which in turn reduces profit and taxes.
But there is a downside and it tends to comes much much later in a number of ways. Usually the first thing is you need to go to the bank for a loan or to roll over your existing facilities with the bank. The result here is you fail to get approval from the bank or the interest rate you are offered by the bank seems too high. In some cases we are seeing people pay between 3% to 5% more than they should for their business funds because their financial accounts from their accountant do not show a strong ability to service the loan facilities you require.
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Are you running a local business? Do you question whether internet marketing is important for your success or not? Most marketers will agree that many local business owners still do not understand the benefits of having a focused online marketing strategy.
So let’s start with what happens when one needs a local service like a plumber, electrician or even an insurance broker? Where is the first place you start your search? Bet it’s the internet!
This common action alone tells you why just about every local business should be thinking about their internet marketing strategy.
As someone who speaks to tradies regularly I bet I can guess what the worst part of your week is…. Having to chase up your outstanding accounts. It can be a time consuming and pointless exercise where you end up feeling frustrated and powerless right?
The good news is that if you don’t like the hassle of chasing bad debts there is some light at the end of the tunnel. Implement these three tips and get on with what you do best – making money, not chasing it!
The number 1 reason tradies have trouble when chasing their debts is from doing business on a handshake. The days of the old handshake are, regrettably, long-gone. By putting in place a set of Terms and Conditions of Trade that sit on the back of your quote, for example, you have a legally binding contract that you can fall back on if things go pear-shaped. The Terms and Conditions of Trade contract should set out the rules of doing business with you and the consequences (your leverage) if the rules are broken – ie. Your client doesn’t pay. You need to think of your business as a bank, start acting like one. It’s amazing how quickly you will become a priority to pay.
The main cause of disputes for tradies happens when the client or their partner asks you to do additional work to the original quote. Feeling they need to maintain the “goodwill” status quo the tradie proceeds to carry out the extra work on a verbal authorisation. When the client gets the invoice for the additional work it turns into a “he said-she said” argument on what was and wasn’t authorised and what was included and excluded from the original quote. A paper trail is always best!
If you have a debtor who is refusing to pay, after having sent the invoice and a friendly reminder, you need to escalate quickly. The quicker you take action, the more likely you are to get paid. Point out a reasonable time frame and deadline to your debtor for payment and the consequences if they fail to meet the deadline. If and when the deadline expires you need to act immediately and escalate to a debt collection agency.
As a tradie in business, if you can stick to this formula, you will be able to watch your cash flow grow and your free time return.
Contact us at Tradebusters for a FREE Tradie Help Consultation. We have specialist solutions for trades including Website Design, Local Area Lead Generation Strategies, Social Media and Marketing Support, Business Coaching and more. Contact us today.
Marketing your business is crucial regardless of the type of business you are, a local tradie or even a small book-keeper.
By marketing and promoting your business right, new and existing customers will see the value in your services to try you, come back again and even refer you. It all comes down to identifying cost effective methods of promoting your business so that you can deliver the right message.
And so what is a good right message to consider promoting? Top of our list is, showing customers that YOUR business is the answer to helping SOLVE their problem.
So how can you promote your business?
Are your current lead generation, marketing, and promotional strategies working to help you build and grow your tradie business? If not, read on…. Read more
