Just a heads up: tomorrow afternoon, I’ll be having a twitter conversation with Lance Godard of the Godard Group
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22 Tweets provides “real-time Twitter interviews with practicing lawyers who tweet.” You can follow @22twts or with the hashtag #22Twts.
Check it out on Twitter, starting around 3pm EDT. [If you miss it, there should be a follow up transcript posted at the 22Tweets website later on.]
Marketing and sales are the life-blood of any business.
From time to time I run across really pertinent, well-written blogs dealing with the marketing aspect of construction businesses.
Today’s tip is to simply share another one with you– the Markup and Profit Blog by Michael Stone. Michael talks the marketing and numbers side of the construction business, so you can increase your bottom line.
If you want sensible, timely tips on how to increase your construction sales, check it out. I’ve added the blog to my blogroll, which is now located on its own page here.
Do you know of other marketing resources? Let me know. I’m always looking for valuable information to share with my blog readers.
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Photo “Paid” by litherland via Flicker/Creative Commons license
While my goal on this blog is to help your construction, architecture, or engineering practice thrive, sometimes it’s best to demonstrate by example of what *not* to do. This list is good for any business, not just those in the construction field.
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Any other big mistakes that should be added to the list? Let me know your thoughts in the comments! (And as always, if you enjoy these tips, please sign up for email delivery of my blog posts so you can be sure to see them all).
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Photo “Failing Street” by Chris Daniel via Flickr via Creative Commons License.
Two Building Expos are coming to North Carolina. If you want to increase your knowledge of building issues, consider checking one or both of the expos out!
First up, is GreenNC’s North Carolina Building Industry 6th Annual Tradeshow, scheduled for September 9, 2010, at the McKimmon Center in Raleigh. The event is free to attend. There will also be a keynote luncheon ($35) by Bill Reed, AIA, LEED, Integrative Design Collaborative.
Second, the 21st Century Building Expo & Conference will be held September 15-17, 2010 at the Charlotte Convention Center. Conference passes start at $75 and increase if you want CE credit. The Expo promises over 50 general session seminars, North Carolina Builder Institute courses and NAHB Education classes.
If you plan to attend either or both of these events, let me know and we can try to meet up in real time. Secondly, I’d love to know your thoughts about these conferences. What were the valuable things you learned?
COLLECTION “TIPS”
Readers of this blog may not know this, but in addition to construction law I also head our firm’s Collections practice. What that means is that, once your client is no longer paying your bills or taking your calls, you can hire our Firm to either (1) get the client’s attention or, failing that, (2) sue the (former) client for unpaid fees or merchandise. However, if you establish good collection practices up front, before you extend credit to any client, you may be able to avoid having to hire a collection attorney to do the dirty work for you. Here are my top 8 collection practice management tips:
1.
Be careful on the front side in who you extend credit to. Get personal guarantee if possible. Make a copy of the person’s driver’s license. (This helps if you have to sue to collect). Check their credit.
2.
Have a written contract. Failing that, a signed purchase order agreement, with contract terms on the back, would be good. Just don’t rely on a handshake. You can include language for interest (up to 18% per annum in North Carolina) and reasonable attorney fees and collection costs. If you don’t have this in writing, you may not be able to get these items later.
3.
With the first payment by the customer, make a photocopy of the check. (This is helpful to know where they bank in case they later stop making payments).
4.
Bill regularly- at least monthly.
5.
Charge an interest rate on past due accounts so your money isn’t being used for your client’s “float”.
6.
If you are in the position to file a mechanic’s lien (contractor, subcontractor, etc)– be aware of time deadlines for both (1) filing a lien and (2) perfecting that lien. These are state-dependent so consult an attorney in your state.
7.
Create a system for large A/R accounts. For example, when account is X days late, send a polite but firm demand letter. When account is Y days late, initiate lawsuit/have your attorney send demand letter.
8.
Consider alternative payment arrangements. If your customer acknowledges the debt, and is willing to sign a note or confession of judgment, you can offer payment terms. If the payment terms are not met, then you can file the note and judgment.
Bonus tips– Steps for after a judgment, to help your collection efforts:
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Comments? Questions? Other good collection practices? Let me know in the comments section or drop me a line. And sign up for email updates by putting your address in the box on the top right so you will not miss any posts.
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Photo “Crayon Tips” by laffy4k via Flickr via Creative Commons License.
