Home
>
Small Business
>
Bringing Home the Bacon

Bringing Home the Bacon

In general, all of us know how to accomplish the task and get the work done. The problem is in how to actually 'get paid' for what we do. If you, like me and most of the entrepreneurs I've worked with, have completed the project, turned it in and been left holding the proverbial bag waiting to be paid for months on end, you are probably just as tired of that scenario as the rest of us. So what can we, as entrepreneurs, do about that particular scenario?

A few months ago ? I might have answered that there is not much that can be done about it. However, great strides have been made in my business sense in the past several months. I got tired of turning the other cheek and taking it in the pocket (bad pun intended).

There are many scenarios that just don't work in the process of collecting for completed work, if you are a 'one-man show'. Some of those include 'traditional collection agencies', legal action against the client, repeated billing for completed jobs, and the tiger claw through the phone ideology. These are just a few of the techniques tried and failed. The reality is that the majority of other businesses are either looking for a free handout and you are the hand providing it, out to stiff you, really don't have the financial backing to pay you for the job you do for them, or once the service is completed you are no longer a necessity for them and they avoid you.

Many of us have resorted to the deposit and final draft methods of collection, leaving only a small balance unpaid at the time the client receives the completed project. This is highly effective, and you do get paid for your work.

Development of this type of collection takes some thought and development of the process using the following steps:

Work by bid/proposal contracts.

Develop a process of billing that allows you to provide a proposal for the job you will be doing for each client. This proposal or 'bid' (if you will) is a description of the job you will be doing in as complete a form as possible and acts as a contract for the job you will be doing. It includes a collection process that you will carry through during the time you are working for the client.

Collect an initialization fee.

When you get the signed contract portion of the proposal and the initialization fee from the client you begin work on their project. This initialization fee should be substantial enough to cover the majority of the cost of the job.

Collect a 'final stage' amount.

At approximately 50% completion, you should collect a final stage amount as formerly agreed upon in the contract. This amount should be all but a 20 ? 25% balance of the entire contract and should actually pay for all the costs of fulfilling this particular proposal/bid.

Final collection on delivery of product/service.

The final payment should be due on delivery or installation of your product or service, or at the very most within thirty days of delivery. This amount should not in anyway include your personal pay or costs of delivering the product. It should be only a portion of the profit for the completed project. Any discounts allowed to the customer should come out of this amount and only at the time of completion of the job and payment, never prior to this.

Using this method to collect for a job ensures that you will be paid for the job you do and establishes a contractual agreement with the client that the job will be done. It is actually a secure way to provide the excellent service and product that your clients want and deserve while assuring your business financial stability. The financial stability of your business determines your personal financial status. Your personal financial stability is at risk in this manner, you need to be shrewd and creative in solving the problem of collections for your company from the earliest development of your business plan. If your collections process is not working in your business, you cannot bring the bacon home.

Jan Verhoeff is a business consultant who specializes in the development of new businesses throughout the Greater Great Plains States. She educates business owners in the process of developing business and marketing plans for their businesses that will encourage them to set and meet productive business goals.

She is the author of a variety of articles published in a variety of business and trade publications throughout the USA.

She may be reached by phone at 719-336-4036 or by email at: janverhoeff@yahoo.com.

premium house cleaning Wilmette ..

In The News:

Cybercriminals use fake troubleshooting websites to trick Mac users into running terminal commands that install Shamos malware through ClickFix tactics.

San Francisco startup Fable launches Showrunner, an AI platform dubbed the 'Netflix of AI' that generates animated episodes from text descriptions with Amazon support.

Apple raised iPhone prices for some models despite receiving tariff relief from President Donald Trump, with the new lineup starting at $799 for the base model.

A two-story 3D concrete printed home in Western Australia demonstrates faster construction methods that could reshape American housing amid rising costs.

Credit scores remain important during retirement for insurance rates and housing applications, while seniors become prime targets for identity theft and financial scams.

Scammers now send unexpected packages with QR codes that redirect victims to fraudulent websites or download malicious software to steal sensitive information.

Meeting AI tools record private conversations alongside work discussions, creating privacy risks that can be managed with proper settings and awareness.

Hotel privacy concerns are valid but rare, with methods to detect hidden tech using smartphone flashlights, mirror tests and scanning apps.

Improve your Wi-Fi speed and reliability with 10 simple router optimization tips that don't require special apps or expensive subscriptions.

A Columbia University breach exposed names, Social Security numbers and academic records of nearly 869,000 people, with notifications beginning in August.

Rental car drivers use AI-powered apps like Proofr to protect themselves from unfair damage fees as major companies deploy automated inspection tools.

Fox News' AI newsletter brings you the latest on technology advancements around artificial intelligence.

OnTrac data breach between April 13-15, 2025, exposed personal information of over 40,000 people including Social Security numbers and medical records.

A woman named Wika announces her engagement to an AI chatbot sparking worldwide debate about virtual relationships and technology.

The notorious people search site National Public Data relaunches despite a previous breach affecting 3 billion individuals, raising fresh privacy concerns.

Revolutionary TRAUMAGEL gel controls life-threatening bleeding from gunshot wounds and traumatic injuries, helping first responders prevent prehospital deaths.

Protect your home network by enabling proper encryption, creating strong passwords, checking connected devices and using VPN and antivirus software.

The Navy's solar-powered Skydweller drone flew nonstop for 73 hours in Mississippi, proving renewable energy can power long-endurance military missions.

Moving and downsizing expose seniors to identity theft and scams as data brokers collect real estate records and personal information to sell to criminals.

ShengShu's Vidar technology revolutionizes humanoid robot training by using AI-generated synthetic video, reducing required training data from hours to just 20 minutes.

Apple's older Mac computers face security risks without regular updates, but 10 essential tips including FileVault encryption and strong passwords can keep aging Macs protected.

Self-driving trucks from PlusAI could reshape freight transportation by 2027, addressing driver shortages and reducing logistics costs for businesses.

Solar farms are turning to sheep instead of mowers to cut grass under solar panels, lowering costs, reducing emissions and creating new income for farmers.

Fraudsters posing as local officials are making fake calls about missed jury duty, demanding payments in a rising scheme that exploits fear of arrest.

Honeywell Aerospace engineers developed a "surface alert system" that gives pilots two aural warnings when they are 15 and 30 seconds away from a collision on the runway.

Bringing Home the Bacon

Small Business