We're still struggling a bit financially. It's hard to think about posting when I'm busy concentrating on not worrying. Money is coming in, a payment arrived yesterday. Another client has been billed. I have been trying very hard to stay calm about our financial situation since the purchase of the equipment that cost $1450. I've had to both rob our savings and use another of my credit cards to balance things out until more money comes in.
Mr. A's new business cards arrived, and his checks. We are beginning a list of companies to which we can market the business.
We went over the checking account together yesterday and there were a couple of good examples that I could show him. There were three entries online for $1 each. I was glad that he was able to produce for all the purchases, that was very helpful. It's just taking time to get adjusted to keeping track of everything. Remember Mr. A has dealt with cash most of his life, so this is a learning experience.
We were also able to break out the gasoline purchases for the last month so we could see how much money Mr. A will net after materials purchase and gasoline. Materials purchased on this last job comes to $1500. I've had to take most of our savings account (the one that holds the money for future purchases) to make up for that amount. We'll see how it goes – we've been leaving $1000 in Mr. A's checking account for materials purchases. We may need to begin asking the client for 50% down for materials until this cash flow crunch eases and business picks up a bit more.
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I can’t recall what business your husband has, but I do not think, with a properly written contract, it unreasonable for clients to provide 50% payment for materials at the upon agreement (signing) of the contract.
With today’s economy, more than ever, everyone needs to safe guard their cash flow, and if you are just starting out and your clients are unproven with credit for your business, this is good financial reponsibility.
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My folks run a woodshop and they have a simple written contract that requests 50% down and includes a clause that covers them in case my stepdad gets the flu and can’t deliver something right when promised. It sounds like you might need something similar; please let me know if you would like a copy. I admire you for pushing forward.
My hubbin and I are also trying to pay down debt and start a business. It’s very stressful and every decision is tinged with hesitation, but I keep reminding myself that the only certainty is if we don’t do anything it won’t get better. Sending happy thoughts of success.
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@MP – home repair and remodeling. I agree with you I don’t think it’s unreasonable to ask for 50% in advance. So far his clients have come to us by word of us, people we know, so we haven’t felt worried about not getting paid. Sometimes it’s our fault too, not getting the client invoiced in a manner which will help us financially. We are also beginning to use a credit card for making these purchases, instead of using the money in his checking account, that helps a little bit.
@Living Simple – it’s nice to know someone else is in the same boat! So far things have been moving right along with business cropping up steadily. I will be really glad if we can make it fly so I can stay home and work fulltime for our company, instead of devoting 32 hours at my day job and then who knows how many every week for our business.
Thanks to you both for visiting and commenting!
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