Collections! Avoiding $250 on FLOAT!

Episode 134 Cash Flow Doesn't Lie. That’s why I recommend commercial cleaning companies have a collections strategy before clients are late paying you. When I first started in business, I made a rookie mistake that cost me dearly. My terms were net 30 or net 45—at least on paper. In reality? I got paid whenever my clients felt like paying me. Some took 60 days. Others stretched it to 120. A few just... never paid. Looking back, it's clear that this lack of strategy nearly killed my business. The Hard Lesson on Collections Cash is king. I've seen this truth destroy more businesses than bad ideas ever could. Our industry with tight margins. Regardless of that, your receivables can make or break you. I once had a client owe me nearly $90,000 over just two months of work. Then they filed bankruptcy, and after paying my attorney and getting in line with everyone else, I ended up in the negative. A penny on the dollar, plus legal fees. That scar taught me a valuable lesson. Preparation isn't optional. It's survival. What Changes Everything for Your Cleaning Business Fast forward to today. My float—the money I'm carrying unpaid—is a fraction of what it used to be. Most of my clients pay within 45 days of work completion. Some are even faster. How? Three things: First, my contracts are ironclad. They clearly state that if I have to take someone to collections, the price increases by 40%, plus attorney costs. Every client signs it. And here's the key. When people actually read what they signed, their tune changes fast. Second, I prepare my paperwork properly. Certified mail with return receipts. Clear invoices. Documentation that proves I did the work and they received notice of payment terms. Third. I make the phone call. Too many business owners are afraid to pick up the phone. They'll email endlessly. They'll send texts. But they won't talk to their client. Communication is still king. When I called one client who was 26 days late, he said, "Oh my gosh, I missed it!" and immediately offered to pay both the overdue balance and current invoice. Sometimes it really is that simple. But Here's What Most People Miss The paperwork needs to be presented the right way. The phone call needs to establish the rules clearly from the start. And when—because sometimes it's not "if," it's "when"—a client ghosts you on emails and texts, your follow-up strategy matters. Sometimes that follow-up needs to escalate. It might seem aggressive. But if you hit the right pain point with clear, documented expectations, they'll respond. They have to. The Real Cost of Not Knowing This I've carried a quarter of a million dollars on float. I've lost six-figure amounts to bankruptcy. I've had to hire attorneys and navigate collections processes I didn't understand. Every one of those scars taught me something. But you don't have to learn it this way. Your Next Move I'm offering a 1-hour counseling call called "How to Collect." We'll walk through exactly how to prepare your paperwork, present it professionally, make the collections call that sets clear expectations, and follow up when payment goes past due. This call isn't theory. It's 13+ years of doing this myself, plus 45 years of business experience behind it. Don't float money you can't afford to lose. Don't wait until you're in the negative like I was. Get the strategy in place now. One hour with me is worth ten times the investment. 📲 💸 🎉 The Collection Call https://docsfs.com/products/collectio... 📚 Custodial Training Books https://docsfs.com/products/custodial...