The Brad Miller Show - Growing You, Growing Your Business

089 – The Dumbest Mistake a Small Business Owner Can Make

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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

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            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

              8.  

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              The Brad Miller Show - Growing You, Growing Your BusinessBy Brad Miller
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