First 30 days: Setting up collections well

searcher profile

December 06, 2022

by a searcher from Texas A&M University in Austin, TX, USA

A friend is in his first 30 days owning a pool route with ~80 customers. He's setting up collections so his AR are low and he spends as little time as possible on it. Cashflow is critical in these first few months. The last owner accepted credit card, check, Paypal. She a few hours a week managing this. He hasn't considered a VA, because he doesn't think it's necessary, yet.

Any recommendations on tools or processes to dial this in well, early?

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commentor profile
Reply by an investor
from Sauder School of Business in Vancouver, BC, Canada
Maybe consider offering a prepay option with a discount. Or lock in current prices for the next x months/years by paying for your yearly maintenance by x date and then ask to put them on some sort of autopayment thereafter, again with some sort of carrot. Bottom line is you want to automate payment so collections is as minimal of an issue as possible. Any nonimal discounts provided will be more than offset by the improved scalability of operations especially during this critical initial period.
commentor profile
Reply by a searcher
from Texas A&M University in Austin, TX, USA
I like the prepay + autopay discount. Thanks! He’s using Harvest for automation.
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