The “new normal” caused by COVID-19 is presenting many of us with new, unique challenges. For painting contractors and many small to medium business owners, one of those challenges is ensuring the necessary cash is on hand to keep ahead of your debts, whether paying the rent or paying your team.
The following are some ideas from various sources that merit consideration in any current cash flow strategy.
1. Build cash-generating incentives into your marketing plan
Painting contractors have found several ways to generate cash earlier in the traditional exchange of services for payment. For example, consider offering incentives to your current customers for early payment, or advance booking discounts for prepayment. Gift certificates and/or vouchers for prospects can also produce cash now for services performed later.
2. Step up collection
Collection is likely the least favorite part of many painting contractors’ lives, and the fact of the matter is that those who were prone to late pays are even less likely now to square up their debts. However, the times don’t give them a pass any more than your creditors do for you, so be persistent in your collection efforts.
3. Consider all relief options
Relief is available in all shapes and forms these days from state and local governments, so be sure to consider all the options that could increase cash flow both for your home and your business.
For example, if your children are in college, they still may be eligible for CARES ACT funds through their school. Additionally, many states are providing funds specific to renters. And state governments are also funding small business grant programs, separate from CARES Act funding.
Visit your state and local government websites to learn more about specific relief programs that may apply to you.
4. Call your credit card company
A recent Wall Street Journal article reported that many credit card companies have begun waiving late fees and deferring customer payments. If such a plan would provide you with relief, understand that staffers there are dealing with literally millions of similar requests. Have the patience to make sure your request for relief reaches a customer service department – and understand that they might be overwhelmed.
5. Open a 0% Interest S-W PRO Account
Your S-W PRO account can increase productivity and maximize purchasing power, all while providing you the benefit of interest-free purchasing that allows you to keep your cash in your business. Visit your nearest store to learn details and sign up for your S-W PRO account.
Get more ideas about managing and building your painting business in the Pintor Pro magazine archive.