I do grading/dirtwork/landscaping with Skids--have a decent-sized business with several crews. I have very few problems and have been totally stiffed only a couple of times. 1) On Invoice, "add" $100, $1000, etc.--depending on size of job, and state, "Please deduct $100 (or whatever)if paid in 5 days" Really helps 2) I quit working as a subcontractor. The general contractors usually pay slow and try to beat you down on price, so I don't even bid a job if the request comes from another contractor. (I keep plenty busy without "helping" my competition). 3)If I need to work out a payment plan to land a job, I will. Most people honest enough to say they need a payment plan will actually honor it. 4)If there is communiction once a bill gets 30 days old, I am understanding, but if you lie to me or won't answer my calls, I sue if bill is 60 days old. I have ALWAYS collected in court, and have always actually been paid once I win. I don't care about what the deadbeats say that I have sued--they have enough of a reputation of not paying that no one listens to them anyway. 5) Any materials are paid up-front before I begin work. I don't know if a new, unestablished business could dictate this or not. I didn't do this until I was well-established and had a reputation for good work. 6) Put a nice profit in EVERY bid. Makes it worth waiting for. DO NOT WORK CHEAP but give the customer VALUE--meaning do good work. In my business, if I land more than half of my bids---#1, I am working too cheap #2, I get too far behind. Do not be afraid to make money (don't work cheap). People will pay your price if you do premium work. Always provide VALUE. 7) Don't be afraid to sue. After 60 days with no communication, just get it done. On the other hand, if the customer keeps me informed of why he can't pay and/or begins payments, I am understanding. Life throws everyone curves once in a while. 8) If you have a bad feeling about a potential customer, just decline the work.
PS-- A list like this would have helped me a lot years ago. These are hard lessons to learn.
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Today's Featured Article - Harvestin Hay: The Early Years (Part 2) - by Pat Browning. The summer of 1950 was the start of a new era in farming for our family. I was thirteen, and Kathy (my oldest sister) was seven. At this age, I believed tractor farming was the only way, hot stuff -- and given a chance I probably would have used the tractor, Dad's first, a 1936 Model "A" John Deere, to go bring in the cows! And I think Dad was ready for some automation too. And so it was that we acquired a good, used J. I. Case, wire tie hay baler. In addition to a person to drive th
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