Backpocket Strategy

At some point, it happens to everyone who runs a business. A client gets behind on payments and you might feel awkward bringing it up. How should you approach the situation? It helps emotionally to put on your Accounts Receivable hat and communicate in a straightforward and clear way. I hope these tips help you feel more confident.

Stop! This week I want you to slow down for a minute and ask what your business needs right now, not what everyone on the internet is telling you is important. They don’t know your business, so they don’t know what you “should” prioritize.

You’re not supposed to know how to do everything in your business. Rely on these experts and you’ll see they are worth their weight in gold.

- CPA
- Community Banker
- Business Lawyer
- Business Mentor or Strategist
- Bookkeeper

Which expert would help your business the most right now?

Do you bring tools of your trade to every job like a handyman? Do you charge by the hour? If you are really good at what you do and you deliver excellent results for your clients quickly, you are being penalized financially for being fast!

Handyman test: do you bring tools, expertise and experience to each job? If so, you need to charge by the project, not by how fast you get ‘er done! Put that

If you need to get motivated to go get new client, review your Brag File! Look at all the great projects you’ve worked on that clients, customers, and colleagues gave you awesome feedback. If you don’t have a Brag File, start one now! It’s easy - just ask collaborators to write up two or three sentences about what talents, expertise, and personality you brought to the project. Make a habit out of asking so you build a big Brag File! Put that

You can avoid the awkward conversations about getting paid for scope creep if you have a really tight proposal. Make sure every bid always includes a detailed timeline of project, turnaround times for edits/revisions and quantifiable deliverables. Now you have a detailed reference point to talk about getting compensated for the inevitable scope creep! Put that

You don’t have to answer client emails, texts, and calls 24/7. Set up reasonable boundaries, communicate consistently, and educate your clients about your communication process. You need to set professional boundaries with your clients so you don’t get burned out. Put that

When you are really good at what you do and know your stuff, you should not charge an hourly rate. The faster you do your work, the less you get paid! Bid on work by the project, not by the hour. In your bids, clients want to see what you are going to do (scope and deliverables), when you are going to deliver (timeline) and how much it’s going to cost them (project price). There is no need to detail how many hours it takes you. Put that

If you are having trouble getting a solid 7-8 hours of uninterrupted sleep, try this habit for a week. Go to bed at the same time every night & set your alarm for the same time every morning, including the weekend. Studies show when our body is in a recurring sleep/wake pattern we get more hours of good sleep and we feel better every morning. It works for me & I’ve been doing it for the past 10 years! Put that

As a business owner, you have many legal ways to reduce how much you owe in income tax every year. Make sure you are taking advantage of the maximum deductions you’re allowed to take!

If you don’t have a relationship with a good CPA, the best thing you can do is research and understand the maximum amount you can contribute to your self-employed retirement plan. Pay yourself rather than overpaying IRS every year! Put that .