CAPITAL IDEAS UPCOMING EVENTS NOVEMBER 3: B U S I N E S S STA R T- U P SEMINAR SERIES 2015 This series is designed to help early-stage entrepreneurs start and better prepare themselves for launching a business. ■■ Where: NABI, Campbell Facility (200 Carnegie Dr. St. Albert) ■■ When: 6:30 p.m. to 9:30 p.m ■■ Admission: $150. Details at business.stalbertchamber. com/events
C A P I TA L Q U E S T I O N
HOW DO YOU ENSURE THAT YOU GET PAID IN A TIMELY MANNER? Entrepreneurs share how they keep on top of accounts receivable “Getting prompt payment from a client first starts with a clear understanding of your customer’s expectations, married with quantifiable measurable goals. If both parties understand unequivocally what success looks like, you’ll find it a lot easier to get paid. In the end, clients may be experiencing tough economic times or outside influences that affect your prompt payment, so offer flexible payment terms, and remember: customers are people too.” Ken Jurina, president and CEO of Top Draw Inc., topdraw.com
“In these times of invoicing and collecting we have a tried, tested and true payment method. We have a contract in which all parties agree on before the run, I then take a deposit. But one to three weeks before the service I collect the balance. This way I can move onto other clients knowing whatever is being done has been paid for. Most businesses we deal with will collect before releasing their product.”
NOVEMBER 16: BREAKFAST WITH GOOGLE: MICRO MOMENTS & CONSUMER JOURNEY Adster Creative and the Google Partners team are talking about customers going to the mobile web. ■■ Where: Startup Edmonton, Mercer Warehouse (10359 104 St.) ■■ When: 8:30 a.m. to 11:30 a.m ■■ Admission: Free. Details at adster.ca/events
Suzan Burtic, president of Legends Limousine, legendslimousine.ca
“We always prepare a letter of agreement and ask for a 50 per cent deposit to reserve a date or project and have the client sign the letter. The letter also outlines when the balance is due along with other logistical details so that we know our respective responsibilities. In the 19 years that we have been in business very seldom have we had any issue with payment.” Joanne Blake, founder of Style for Success Inc., styleforsuccess.com
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“Terms of payment shouldn’t be a surprise to your customer. Ensure these facts are stated on your quotation, website and invoice. Ask for a deposit up front and final payment upon completion of the project or product. Don’t forget to include a fee for late payments (interest charged on the balance owing). You have provided a product or service and have a right to be paid in a timely matter.”
COMMUNITY QUESTION
What training strategies have worked best for you?
Gail Hall, chef and owner of Seasoned Solutions, seasonedsolutions.ca
“Milestone payments work for me: 50 per cent up front, 25 per cent at first milestone, 20 per cent at second and five per cent at close. Agreeing on milestones with the customer and confirming them as the project moves forwavrd goes a long way to confirming client satisfaction, adjustments and end results.” Patricia Lambert, owner and producer of Red Shoe Savvy, redshoesavvy.com P H O TO S U P P L I E D BY: PATR I CI A LAM BE RT
“For me, it’s pretty simple. I give my clients 30 days to pay and if they do not pay within the 30 days, I halt all services until I receive payment.” Ameet Khabra, search engine marketer at Ameet Khabra Marketing, ameetkhabra.marketing
Training can be an important component of business development; unfortunately many organizations cannot find suppliers of appropriate training or ways to provide this in the regular work schedule. That’s got Patrick Binns, president of Abinsi Solutions Group, curious to hear your successes: What training strategies have worked best for you? You can answer the question in two ways: Open today’s Capital Ideas email if you’re a member or visit capitalideasedmonton.com. We’ll publish the best answers, along with your business name and website address, on November 4th.
“I encourage small businesses to take payment up front or at least a deposit to ensure payment is made in a timely manner. Accepting credit card payments is a huge asset for a small business owner. Most clients understand this.”
Ryan Holtz, CEO of Ryan Holtz Marketing Consulting & Training, ryanholtz.ca
“Communication and expectation setting is really important. We help our customers understand the importance the on time payment means to us and how it ensures a higher quality of service and reliability for them. This way, they are vested in our mutual success and it also helps to provide early payment discounts, as well as invoice due reminders (before the invoice is due). As well, make it easy for them to pay by offering multiple methods.” Ashif Mawji, president of Trust Science, trustscience.comtions.ca
“Customers are subject to a credit check before we take them on and pending their score we’ll often require a security deposit. We further incentivize security deposits by offering lower rates and pay interest. If a customer doesn’t pay, we draw on the deposit and then refund the balance.” Chad Mielke, owner of Peace Power Corporation, peacepower.ca
“Negotiate multiple payments for each job. Ask for the first payment up front. Don’t delay on sending your invoice, send it the minute you are approved to do so. Clearly state the deadline for payment on the invoice. Send the invoice electronically and accept electronic payments if possible. Follow up immediately if payment is late.” Blaine Bertsch, founder of Dryrun, dryrun.com
These answers are in response to a question posed by Wellington Holbrook, executive vice-president of ATB Business. Here’s his take: “The first step is so obvious you’d be surprise how many entrepreneurs miss it. Just ask. Setting tight but reasonable terms is acceptable to more of your customers than you might expect. If you are worried that this might sacrifice your relationship, don’t worry, they will let you know and you can adjust. The second step is maybe less obvious. Make sure that you understand your customer’s billing cycle. By taking this into consideration you can optimize the best time to get your invoice into their system and to get your payment sooner, and not later.”
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Find the full posts on these members’ LinkedIn profiles. We’ll curate a selection every Friday in our LinkedIn group, Capital Ideas Alberta. To bring yours to our attention, email it to hello@capitalideasedmonton.com or post to LinkedIn with the hashtag #capitalideas.
From “How to be the new black” by Leanne Brownoff, business coach at Leanne Brownoff Consulting ( leannebrownoff.com):
“There is a palpable tension in the workplace these days. As the oil and gas slowdown ripples into other businesses, people sense that their workplace has become a reality show where they are fearful of being ‘voted off the island.’”
(pvs4u.ca):
From “The key to better ‘business startup’” by Jim Ewing, cofounder of ProVision Solutions Inc.
“Ideally you’ll have eager customers who are excited to purchase your products or services. It’s great if you’ve got that covered, but will you be ready for them and able to deliver when they arrive?”
From “This is how we do it” by Kevin MacDonald, CEO at L6S Business Consulting Inc. ( l6sbc.ca):
“Social media, like Twitter, Facebook, or LinkedIn, are great tools to connect with other people, learn new perspectives, and develop a sense a community. Granted, social media does not create a sense of community like a neighborhood BBQ with friends and family.”
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