Featured Coaching Training: 6 Thunder Moves for Collecting Accounts Receivable
Struggling with cash flow and collecting accounts receivable? In this series, we'll teach you super moves that will improve your business' collection practices and ability to ensure that money is coming into the business for everything you sell.
Featured Coaching Excerpt - Notes & Transcript, Part 1
The White Moose!:
Today's Topic : 6 Thunder Moves For Collecting Accounts Receivable
Jargonization Translation: Money owed by customers (individuals or corporations) to another entity in exchange for goods or services that have been delivered or used, but not yet paid for. (www.investopedia.com)
Notable Quotable: “Try, try, try, and keep on trying is the rule that must be followed to become an expert in anything.” -W. Clement Stone (He was a businessman, philanthropist and New Thought self-help book author. Wikipedia)
Cute Little baby:
Editor's Note: The dark and light side of the Force!
Thunder Moves For Collecting Accounts Receivable: Thunder Move #1 - Get paid in advance
Thunder Move #2 - Incentivize early payment
Thunder Move #3 - Cash on delivery / Collect at the time of delivery
Thunder Move #4 - Add in a financing charge into your agreements and contracts
Thunder Move #5 - Dramatically increase your fulfillment or product delivery and creation cycle
Thunder Move #6 - Make it easy to do the right thing (credit cards, debits cards, bank draft, paypal, cash, etc..)
- [Voiceover] Three, two, one.
- Nine out of 10 business owners watching this right now, have a problem with this. For some of you, it's a huge problem. Like it's spreading, it's becoming a viral thing. It's eating away your profits.
- Thrivers, we are back. We are here with the US Small Business Administration, Entrepreneur of the Year, Clay Clark. Many people know him as Claytron. You can check out the Thrive Time Podcast with Dr Zoellner, it's up on iTunes.
- Yeah, things are starting to catch on quite a bit. Also, a lot of people know me as "The White Moose".
- That's also a thing. Thrivers, we are here today, talking about the six thunder moves for collecting accounts recievables. It is pumped, I'm pumped, you're pumped.
- It's so pumped, it's become its own life force. The thing about this though, seriously, is we're gonna talk about this. We're gonna talk about collect money, and we're gonna make it exciting because a lot of people, they do, they put their head in the sand. They kind of hide away from accounting money. It's not something we wanna talk about. You don't wanna tell your family people owe you money. You don't wanna think about people owing you money. It's frustrating that people owe you money. We're gonna bring it to the forefront and every time we unveil a thunder move, we're gonna play this sound right here, so get ready. We're gonna play this sound. That's exciting. That's the kind of edutainment we're bringing to you. Marshall, let's do this thing.
- Okay, so Clay, from your experience, how common of a problem is not collecting fast enough in business today?
- Nine out of 10 business owners. Nine out of 10 business owners watching this right now, have a problem with this. For some of you, it's a huge problem. Like it's spreading, it's becoming a viral thing. It's eating away your profits. For somebody, it's hurting your reputation too, because you're not collecting enough money. So now you're bouncing cheques for payroll, you're bouncing cheques to vendors, you're having problems. It's a huge thing for some people, and for other people, it's a problem because you only operate at a 20% or 30% profit. And you're not collecting from 20% or 30% of your customers. So you're really hurting yourself. So this is a huge thing for a lot of people. Let's teach the thunder moves.
- Okay, so Clay, what would you say to some of the Thrivers, not our Thrivers, but other people in business that aren't on the site? What would you say to them who say, "Oh, it's not my thing. "It's not my thing that I wanna really be doing. "It's not my personality."
- Let me talk to you. Let me give an example. Victoria's Secret is not my thing. Do you know what I mean? So, I know if you're a woman, you probably feel better that I'm not in Victoria's Secret too. So that makes you feel comfortable. I get it, but here's the deal. I'm married, so I have to go there once a year. It's like a... You know Armenian Moses?
- Allegedly, he was walking the desert for what, 30 years, 40 years? It was more than an hour, so he's walking while he was like, "Hey, God, God. "Hey, I'm not really into that whole walking-in-the-desert "deal, I'm more of a stander. "I'm more of a strategic guy. "I'm more of a manager. "I'm more of a manager. "I don't really wanna do the whole walking deal." As a husband, you've gotta go to Victoria's Secret. If you're a husband and you're a decent guy, you gotta go there once a year, why? Because it's a thing. I mean, it's like the eleventh commandment. If you're Moses, you gotta go through the desert, if you're a business owner, you have to collect the money otherwise, you're not gonna be self-employed, you'll be self, check it, check it, check it, unemployed.
- There it is. And so there's this Notable Quotable, it's from W Clement Stone.
- A big deal.
- He says, "Try, try, try and keep on trying is the rule " that must be followed to become an expert in anything."
- Yeah, so again, I use this example a lot, but I wanna help you. Somebody here watching has a baby. You have a little baby, cute little baby. Imagine that baby, just a cute little baby, and that cute little baby, every time it tries to walk, it falls down and you're not going, "The baby can't even walk, what a stupid baby. "What a dumb baby, look at that baby. "It's so pathetic, the baby can't even walk. "It's been alive for like several weeks "and it won't even run, dumb." No, that's how some people are treating yourself. That's a self-talk you're doing for yourself. You're trying to collect money for the first time and your self-talk, you're going, "Whoa, what an idiot, he can't even collect money. "What kind of business owner are you? "You're an idiot." That's self-talk. If people talked to you the way your'e talking to yourself, you wouldn't like yourself so much. You wouldn't do it, so just work with us there. We're gonna teach you the force, we're gonna teach you the thunder moves. This is huge. This is like Darth Vader teaching you the dark side and Luke Skywalker teaching you the positive, like Yodas, teaching you the light side, the good team and you have the moral moves, you have the morality to handle both the dark and the light side of the force. Do you know what I mean? It's unbelievable. This is the unicorn of collecting money.
- Okay, so we're gonna cover the six thunder moves here and I'm gonna read them all off, we'll get into each one.
- Yeah, awesome.
- Okay, Thunder Move number one, get paid in advance. Thunder Move number two, incentivise early payment. Thunder Move number three, cash on delivery. Collect at the time of delivery. Thunder Move number four, add in a financing charge into your agreements and contracts. Thunder Move number five, dramatically increase your fulfillment or product delivery and creation cycle. And Thunder Move number six, make it easy to do the right thing. Credit cards, debit cards, bank draft, PayPal, cash, whatever it is, okay?
- And Thunder Move number seven, if for some reason, you have a hard time collecting cash and you've let yourself down, I want you to listen to Careless Whisper by Wham. I want you to queue that up and listen to it in your mind. Every time you fail to collect money, I want you to queue this song up as punishment for failing to do it. I want you to queue this song, I want you to listen to it. I want you to look into the mirror and realize that you've let yourself down and you have to hear this song again. That's what's gonna happen. Just get ready. If you've let yourself down, you've gotta do it.