Deal flow management for building services

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that's awesome thank you very much yeah man no this is a good this is a good call I think I just might take this one and just take the audio out and make it a podcast for my meeting yeah we'll send me a text after the meeting I want to get how it goes when was the last time you were pumped to talk about money with your client well if you're like most construction business owners talking about money with your clients causes stress the reason this is stressful is because you're probably financing your clients projects you're strapped for cash and you need that next progress payment you've performed the work and now you're waiting on the money from your client to pay for the work already in place well when you started your construction business you didn't even realize it you were financing the job because the projects were small so the stakes were small but now that your business is growing you realize you can't afford to finance your clients projects anymore you realize you're not a bank that's exactly what my client Noah realized when he was developing a proposal on a large project he realized the 30 30 30 10 billing structure he had been using on smaller projects well it's not gonna work out so well on a larger job watch the rest of the video to learn how to maintain your cash flow on a large project you are not a bank so stop acting like one check out the rest of the video and learn how building early and billing often will make you pumped to talk about money with your clients one question I was gonna ask you about about for this job is I've got my normal jobs there they're like you know 40,000 ish is what we're doing right now so those I just break up into four parts four bits for the payment schedule 30 30 30 and 10 if this job ends up being in the four hundred thousand - or even if it's a hundred thousand it seems like I should billing to be billing more often yeah then the 30 30 30 10 yes and is there should I just do it tie it to milestones is that the best no I just I would tie it to your weekly progress so I would tell them like no and I would tell them normally we do a payment schedule of 30 30 30 10 that's that's pretty standard for these type of projects it will probably have to do something a little bit different just because of the detailed nature of it once we get it planned out we'll know what our budgets are where our contingencies are and what we you know what we think we're gonna spend on this thing in order to get started we'll probably do a deposit for one month for example this is a six month project one divided by six is sixteen percent so it's under a twenty percent right and so is it maybe a little bit less than you normally would take on a bigger project but but it's also a bit sixteen percent of a hundred thousand dollars still a good chunk of money yes that'll get us through the first what we think is the first month right and and that's about that would be about sixteen to you know say fifteen to twenty percent but we don't you know we don't know these things can gotta go kind of slow before we get through that deposit money then we're going to give you another invoice for the next week meaning let's say that I'm working up through Friday and that's that's kind of where we hit our 16 percent next Friday will be another five percent complete with the job I see okay I'm gonna bill you every week for our progress okay and we're gonna bill out about a week ahead the way it's gonna look is you'll pay about a 20% deposit up front then when we work as we get through that 20% and we're estimating that's probably about the first month you're not gonna see another invoice for about three weeks then on the third week we're gonna bill you for the following week that's the way that we can progress through we make sure that everybody's caught up you know and everybody's being paid because we can't finance the job we're not financing the job right and we don't want you to you know we don't want you to pay because they're gonna be so many unknowns in this thing yeah we're trying to protect both people so then you ask them are you comfortable and do you want to write a check every week okay if not then we can go to an every two week in voicing structure but it's still gonna be based on the progress and most people are like they don't want to have to pay it check every week right but if you're what you're trying to do is saying I'm willing to just get paid in smaller amounts but it's gonna be more frequent is that convenient for you and they say gosh no I don't want to you know I'm busy I'm whatever you know I'm not I'm gonna miss something or what I would say okay we can do two weeks but they're gonna be a little bit bigger and we're gonna work so you're gonna get that invoice this week yeah and it's for what we're projecting where we're gonna be by the time you write the check and it gets back to us right so we're gonna build a little bit ahead but not too far we're just a few percentage just a few days worth not you know not thirty percent of the job and another 30% of job and these type of jobs that's the best way and he might say well I'd rather do with 30 30 30 10 right great no problem 30 percent up front and still the same thing after the first month another 30 percent but that's only for quoted stuff you know you're gonna have that other stuff the hourly stuff that comes up so it might be a little bit easier if you just prepare them like every couple of weeks okay and it depends on the job you know you might want to say part of this job is to have an on-site meeting with them so you can update them on the progress and you can hit up hand them an invoice every two weeks yeah got it okay and I would write the contract you have something like that saying 20% deposit and then bill upon progress every week or two weeks and you kind of talk about that make that decision you are not a bank so don't act like one bill early bill often and make sure you design a progress payment structure that serves your construction business if you want to learn a framework to streamline your construction business and create the systems to increase your profits reduce your stress and get your life back then apply for a coaching program today go to Sean van dyke dot-com slash apply and fill out the form on that page my team will will review your application and will follow up with you with the next steps we will get you plugged in one of our coaching programs so that you can stop worrying make more money and get your life back apply for a coaching program today at Sean van Dijk dot-com / apply [Music]