Construction business owners should set short payment terms like 14 or 28 days, then enforce them immediately: email reminders on day 1 and 2, phone call on day 4. Clients pay on time when you show them you're paying attention.
Chapters
Here's a strategy to save your construction business from financial chaos, inspired by Dan Kennedy's Broken Window Theory. Tackle small issues to prevent much bigger problems. Apply this to your payment process. Set clear terms. Negotiate favorable payment terms like 14 days, 28 days. Be relentless. As soon as the payment is late, follow up immediately. Day 1, reminder email. Day 2, follow-up email. Day 4, personal phone call from yourself. You got to train your clients. Consistency is key. Be persistent from the start to ensure your clients prioritize paying you on time. Stay on top of your invoices from day one to avoid being cash-strapped.