Bridge Firm Recovery June 2019

Recovery Reader The June 2019

www.bridgefirmrecovery.com (269) 359-0814

MANAGING YOUR RECEIVABLES When you first open your doors for business, you tend to take every customer who walks through your door. Some pay up front, and some ask to be billed. Either way sales are booming! It feels like the world was just waiting for your business! Or so you think … About the fourth month, the unpaid sales have also spiked to new highs. Even more challenging, cash flow begins to tighten. Uh oh! What happened? As it often turns out, some customers who “flocked” to you are people who take advantage of businesses. They don’t pay anybody if they can get away with it. We are often asked to recover on these potential bad debts. While we love to do it, we also believe there is a better way to manage those outstanding receivables. FROM THE DESK OF Dan Larson Have you determined your risk tolerance and set standards for deposit and progress payments? Do you have a process in place that allows you to review and determine the customer’s ability to pay for the services? Do you have a quality contract? Written by an attorney who protects YOUR interests? AND signed by your customer? Do you maintain detailed documentation, change orders, and notes from discussions and emails? Do you have a specific process to bill and follow up on payments due? If you answered NO to any of these questions, we would love to talk with you. Together we can keep the cash flowing and your customers coming back for more! • • • • How so? Receivables management begins BEFORE the sale: •

“When we make progress and get better at something, it is inherently motivating. In order for people to make progress, they have to get feedback and information on how they’re doing.” –Daniel H. Pink Every business owner knows that providing feedback to their employees is an essential part of their operations, and every one of them reading this article most likely holds annual or semiannual performance reviews to talk about employee performance. But are these reviews really substantive discussions that provide team members with actionable information so they can grow and develop, or are they just formalities in which you run through a list of standard questions and metrics? Are they the only real discussions based on feedback that team members receive? Regardless of your answers to these questions, the fact of the matter is that most business owners and managers could do a much better job providing regular, relevant critique to their staff. A Foundation IQ survey asked more than 30,000 employees to respond to the statement “I know whether my performance is where it should be.”Only 29 percent answered, “always,” 14 percent said, “frequently,” 21 percent said, “occasionally,” 15 percent said, “rarely,” and 21 percent said, “never.”That adds up to more than half of the workforce not knowing if they’re doing a good job most of the time. It’s up to business owners and leadership teams to correct these alarming numbers. If your feedback is deficient, follow these tips for better methods of reinforcing positive behaviors and reversing negative ones. FEEDBACK SHOULD BE CONSTANT The first thing you can do to improve your feedback system is to make it an ever-present initiative. If you let an employee make a mistake without correcting it, you may think you’re giving them the benefit of the doubt. But what happens if they make the same FEEDBACK THAT FEEDS EMPLOYEE GROWTH How to Provide Guidance and Praise in aWay That Resonates

Remember, the sale is not complete until the cash register goes “Ding!”

Have a great month!

- Dan Larson

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