Running a small construction business is a constant juggle, and managing your receivables is one of the more frustrating tasks. How often have you been waiting on overdue invoices? Do you have enough cash flow to cover next month's expenses? If this sounds familiar, you're not alone. Many small business owners need help keeping their accounts receivable in check, which can ultimately impact their business's health and sustainability.

 

This guide will provide practical steps to streamline your invoicing process, confidently approach past-due invoices, and ensure steady cash flow.

 

Understanding the importance of timely invoicing

 

Timely invoicing is more than just good business practice; it's critical to maintaining a healthy cash flow. When invoices go unpaid, your cash flow takes a hit, potentially affecting your ability to pay suppliers, cover payroll, or invest in growth opportunities. By sending invoices promptly, you lay the foundation for timely payments.

 

Studies show that businesses that practice timely invoicing and set clear payment terms see fewer delays and disputes.

 

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Topics: High Profit Repeat Construction Clients, Clients, How To Charge Clients, Get Paid On Time, Bad Customer Service, invoices, Receivables, Construction Business Receivables

Have you ever paused to consider the real impact of your business's customer experience? Is it lifting your brand or dragging it down, along with your team's morale? Today's consumers expect nothing short of excellence, so understanding the consequences of poor customer service is vital.

 

So, what does poor customer service cost you? Let's delve into the details—they might change your perspective.

 

The ripple effect of dissatisfied customers

 

Every business faces it sooner or later—a client who leaves less than satisfied. But don't be fooled into thinking that the story ends there. Unhappy customers, in your case, homeowners, rarely stay silent. They're more likely to share their experiences with friends, family, and the vast world of social media. What's worse, a scathing online review can echo for years, impacting your brand's reputation far beyond the initial complaint. 

 

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Topics: Give Your Customers And Clients What They Want, High Profit Repeat Construction Clients, Clients or Customers, Clients, How To Charge Clients, Client Feedback, Bad Customer Service

Complaints are an unfortunate part of running a business, but they happen. No matter how hard you work to please your clients, eventually, someone will have something negative to say. However, with the right approach, you can turn complaints into a valuable tool to strengthen your business.

 

When reviews are great, that's a fantastic thing. But unfortunately, when you get negative ones, you have to adjust. You can't please all customers all the time.

 

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Topics: Clients, How To Handle Negative Reviews, Responding To Complaints

Steady, reliable cash flow is crucial for the survival of your construction business – so taking steps to ensure your customers pay promptly is a key priority.

 

Debtor days refer to the length of time it takes clients, on average, to pay you for the work you've done. A higher number of debtor days means clients take longer to pay you. A lower number of debtor days means clients take less time to pay you, which means there's more cash available for your business to use. 

 

In the construction industry, debtor days can average as long as almost three months. Shortening that length can have a significant impact on your cash flow.

 

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Topics: Outsource, Do What You Do Best And Outsoure The Rest, Invoicing, Winning Teams, Clients, Contractor Guidance, contractor delegation

Construction is a tough business, and people failure is common. Most of our clients have either failed or come very close. It doesn't matter how many times you are knocked down; it only matters that you learn your lessons, get up, and go again. Some lessons we already took note of years ago, having owned and operated our construction company. By building a system and gaining insight from us, you can pick up from our mistakes which you don't have to go through and can start avoiding before it comes crashing down. 

 

We are deeply passionate and committed in the construction industry that we want to support you, our clients and readers, to achieve your definition of success. Whether you're a contractor, owner, spouse, a business professional, bookkeeper, or accountant; we understand your frustrations because we've been where you are now, and we're here to help.

 

 

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Topics: Communication Skills For Better Accounting Results, Clients, Online Class, Construction Accounting Online Classes

Knowledge leads to profits and cash flow. What makes knowledge powerful? Use of knowledge. In this cutthroat construction industry, you may not be able to outgrow your competition forever, but you can always outlearn them.

 

Randalism: If you know the answers, the questions will not bother you.

 

The only real difference between success and failure is the answers. What kind of answers are you looking for? Alternatively, should we begin by pointing out that you might be asking the wrong questions? 

 

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Topics: Communication Skills For Better Accounting Results, Clients, Online Class, Construction Accounting Online Classes

Excellent communication skills are part of any process, and by definition, it entails more than just talking. Today, it's the phone, emails, messaging, faxes, and it includes the flow of soft documents. 

 

Of course, talking is a significant part of it.  Most of us would be lost without our mobile phones.  With internet access and a handful of applications, the newer smartphones replace the need for a traditional landline, fax machine, laptop, desktop computer or camera. 

 

Many people already go to their bank, move money, pay bills, and pay for services.  Banks have added the technology where you can stop going to the bank altogether, with the bank's app, you can now snap a picture of the check and deposit into your account from your customer's location.

 

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Topics: Communication Skills For Better Accounting Results, Construction Marketing, Clients

It takes work to make the phone ring. It takes even more work to increase the sales ticket. Customers are looking for a contractor to do a little work. If you offer three options, do you find customers usually choose the middle option? 

 

When trying someone new, they may go with a "Low Risk" by prepaying for services on a "Deal" on a contractor lead generation service. The deal allows them to set a "budget." It allows them to try you out before mentioning any additional details. Have you ever heard anything like this from a prospect: "Hello Contractor, I had nothing better to do this week, so I filled out your form and called you on the phone to ask you come to my house and while I act your tour guide because I am thinking of having some work done."? Not likely.

 

 

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Topics: Construction Marketing, Customers Vs. Clients, Clients, Inbound Marketing For Contractors, offline marketing for contractors

Customers - Are disloyal price buyers who purchase commodities and services with cost as their primary consideration.

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Topics: Clients or Customers, Customers Vs. Clients, Customers, Clients