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Name of author Rick Baker, P.Eng.

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Collecting Accounts Receivable…7 Tips

by Rick Baker
On Dec 14, 2010
7 Tips for creating smoother & less-stressful collection of money owed to you
  1. Understand the party you are dealing with:
    • Is the party creditworthy?
    • What’s the party’s current financial and ownership status?
    • What’s the party’s process for paying its bills? [who, what, when, where, how…why?]
    • Who are the key contacts?
    • Understand exactly how they go about making payments
    • Understand how the party pays its best supplier
  2. Understand the specifics of the Purchase & Sale agreement
  3. Keep your invoices simple and clear
  4. Issue your invoices consistently…same timing, same method of delivery, etc.
  5. Over-communicate about your invoicing process…example: send notes explaining your process
  6. Have a disciplined collection process…write it out…make sure each step is clear. For example:
    Step 1: issue invoice on the __ day of the month
    Step 2: __ days later contact __________ to ensure your Client received your invoice
    Step 3: __ days prior to due date contact ___________ to __________
    Step 4: depending on the complexity of your Client’s internal approval process…repeat Step 3
    Step 5: [from time to time] when due date arrives contact your Client to thank them for paying
    Step 6: in the event payment did not arrive on time
    • immediately contact your Client to let them know
    • request your Client’s – i.e., your key contact’s - help…ask for an immediate correction
    • be friendly, be objective, be clear, & be firm
    Step 7: in the event payment is ‘stretched’…see the next Thought Post on this topic…or contact us for suggestions
  7. Make sure your employees are trained on all aspects of your collection process…including ‘interpersonal skills’ training
Footnotes:
Question: How can we do better at collecting?
Answer: Have a disciplined collection process, make sure your people always follow that process, and make sure your Clients know your people have a process and will be following up closely if/when payments are not made on time.
Question: Why spend time on improving collection?
Answer: Improving collection increases your bottom line a number of ways:
  • At one end of the spectrum – it reduces bad debt
  • At the other end of the spectrum – it reduces your people’s stress levels…better concentration, less mistakes, less talk & more action, etc.
  • In between – it reduces use of your line of credit and interest costs, it makes your accountant happy, etc.

Tags:

Leaders' Thoughts | Pay! - a philosophy about money

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Successful people have more time….sharing another thought

by Rick Baker
On Dec 8, 2010
Who is your biggest critic?
 
Who consumes a huge chunk of your time…day after day after day?
 
If you are like the vast majority of us then the answer is…
  • that nagging, incessant voice of dissatisfaction in your head
  • that little voice which, for most of us, sounds like our own voice and seems to talk at us from a place just inside our heads behind the base of our nose
That little voice keeps rehashing our past errors and reminds us of past difficulties. That little voice repeats and repeats would’a’, could’a’, should’a’ and that little voice never runs out of topics to talk about.
 
That little voice keeps telling us we must worry about future problems.
 
That little voice talks on with unwavering insistence in its ability to predict the future…I mean, predicting the negatives that will visit us in the future: the problems, the difficulties and the what ifs.
 
We listen to that negative-chatterbox voice…it is so tough to ignore it.
 
We let it mess up our concentration during the daytime.
 
We let it mess up our sleep at night.
 
We let that little voice consume huge amounts of our time.
 
To the extent you can quiet that little voice you will be more successful and you will have more time.

Tags:

Attitude: Creating Positive Attitude | Beyond Business | Brain: about the Human Brain | I'm too busy! - I don't have time! | Leaders' Thoughts | Optimism & Pessimism | Put Your Best Brain Forward

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How can you be sure your company delivers Value to its Clients?

by Rick Baker
On Dec 7, 2010
You can prove you have delivered Value to Clients when…
  1. You can list the Clients’ Clients you have provided to your Clients
  2. You can list the Clients your Clients have voluntarily provided to you
  3. You can list the Testimonials your Clients have voluntarily provided to you
  4. You can confirm statistically-significant growth of “Buzz” about your company
  5. You can confirm statistically-significant growth of your Social Media stats (ex, website action)

Tags:

Clients' Clients Philosophy | Leaders' Thoughts

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Credibility and your Marquee Clients

by Rick Baker
On Nov 10, 2010
If you do not have a Marquee Client then it would be worth your while to figure out how to solve that problem. You could make that your #1 priority.
 
If you do have one or more Marquee Clients, then…well done. You have one of the most-important ingredients.
 
Your business-success recipe calls for this ingredient, your Marquee Clients.
 
How do you know if you have Marquee Clients?
 
Marquee Clients have these sorts of qualities:
  • They are well-known in your target market area
  • They are respected
  • They are successful
  • They are growing and vibrant
  • They illustrate leadership qualities in their market sectors
  • They employ business leaders
  • They employ community leaders
When you serve a Marquee Client you prove your strength and your capability.
 
Marquee Clients validate your ability to live up to your word.
 
As the Heath Brothers say, in their Sinatra Test…‘if you can make it there you can make it anywhere’.

Tags:

Leaders' Thoughts | Marketing

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Family business thoughts

by Rick Baker
On Nov 9, 2010
Joan Fisk shared many personal stories with us at the October 22nd Centre For Family Business breakfast event.
 
Several of Joan’s comments and stories struck chords with the audience.
 
Joan was kind enough to let me share with you some excerpts from her presentation.
 
Joan’s grandfather, Edward Warnock, while in his early 40’s conscripted to support the Canadian Second World War effort in 1939. This point struck me because my grandfather, almost the same age, did the same thing…leaving his teenage children for 7 years. From time to time, we must pause to remember the war-courage and war-sacrifice recent generations have been spared.
 
In 1954: Joan’s father, James Adam Warnock, picked up the broken pieces of the family business and started over. Within less than 10 years, James Warnock’s life had changed from that of a privileged private-school graduate to a ‘broke’ husband with 4 young children…soon to be 6 young children. Joan’s story of her father’s dedication to re-building the family business is one of the most fascinating family business success stories I have heard. And, the way Joan told the story was laced with openness, respect, realism, tolerance, and love.
 
Joan’s words will show you what I mean…
 
“My father, as you have heard, was a true entrepreneur. He refused to give up when he was faced with the demise of his family business empire, and it was this unbending drive, energy and passion he passed on to his children.”
 
Joan also spoke about ‘change-for-the-better’, including the positive change confirmed by the roles women now serve in business…
 
“In previous generations, generally accepted business practices did not include taking a woman into the company. That was on a par with taking women to sea: bad luck at worst and a lot of trouble at best. As you heard in the history of the Warnock Family business there were no women successors in the first 4 generations.”
 
In 1978 Joan became the 5th-generation President of the family business, Tiger Brand Knitting Company Ltd.
 
And, Joan shared a touching father-daughter story about how that happened too.
 
Joan: Thank You for sharing your sharing your family-business stories with CFFB members, sponsors, affiliates, guests, and friends.
 
Footnotes:
Joan Fisk…samples from Joan’s bio
 
Pres & CEO, Greater K-W Chamber of Commerce, 2008-2010
VP International Women’s Forum, 2007-2010
Director – Wilfrid Laurier University, 2005-2010
Owner – Joan Fisk Designs, 2005-2010
Director – Gore Mutual Insurance, 2000-2010
President – Tiger Brand Knitting Company Ltd., 1978-2005
 
 

Tags:

Leaders' Thoughts | Entrepreneur Thinking | Family Business and CFFB

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