Episode 1142 – Secrets to Smooth Cash Flow: Mike Campion’s Game-Changing Tips
Introduction
Running a cleaning business is no walk in the park, especially when it comes to managing clients and cash flow. In a recent coaching session, Mike Campion laid down some solid advice on handling common challenges like getting clients to pay upfront and setting aside money for emergencies. If you’re tired of chasing payments and want to keep your business running smoothly, Mike’s got some practical tips to help you out. From being upfront with new clients to managing your expenses, here’s how to keep your cleaning company on track.
Train Clients Early
Mike always says, “Set the stage early!” When you’re bringing on new clients, it’s way easier to lay down the law about how you handle billing right from the get-go. Tell them upfront that you do credit card on file and charge at the beginning of the month. Trying to switch them later is possible but much tougher.
Be Upfront and Honest
Mike’s got a strategy: be honest and humble. Let your clients know you’re a small business, and you can’t afford to offer net thirty terms. Tell them, “I’m too little to extend credit, and I need to focus on giving you the best service.” Clients appreciate honesty and most will understand your position.
The Right Clients Matter
Mike’s got no time for clients who don’t respect your terms. If a client insists on net thirty and it’s making you uncomfortable, they might not be the right fit. It’s better to grow slower and have reliable payments than to chase big clients who might not pay on time.
Emergency Funds and Scaling
Got a question about setting aside money for emergencies? Mike’s advice is clear: for a cleaning business, you don’t need a huge reserve. About half a month’s revenue in cash is fine. Anything extra should be invested. If you’re scaling and still feeling the pinch, you might need to revisit how you manage your expenses and payments.
Get Paid in Advance
One big reason for cash flow problems? Not getting paid in advance. New work might mean future profits, but it’s a cash drain right now. Mike stresses the importance of getting paid upfront to avoid cash flow headaches. Keep your costs of goods sold below 45% and expenses under 25% to stay in good shape.
Mike’s straightforward advice: be clear, be honest, and focus on what works best for your small business. Get those credit cards on file and keep your cash flow steady. Your cleaning biz will thank you!