Money through the business.
WHAT THE PATTERN IS
Parts are bought before the job is paid.
WHAT THAT PRODUCES
Cash committed per job, recovered at completion.
WHAT TO ESTABLISH
A deposit covering parts, on substantial jobs.
WHY
It removes the exposure and it confirms the customer is committed.
WHAT TO AVOID
Ordering expensive parts without a deposit.
WHY
Customers change their minds, and you hold a part for a specific vehicle.
WHAT TO ESTABLISH ABOUT PAYMENT
That the vehicle is released on payment.
WHY THAT MATTERS
Releasing first and invoicing after is how workshops accumulate uncollectable debt.
WHAT TO DO ABOUT REGULAR ACCOUNT CUSTOMERS
Agree terms, in writing, with a limit.
WHAT TO MONITOR
Their balance and payment behaviour.
WHAT TO DO ABOUT ABANDONED VEHICLES
Establish the position early.
WHY
Vehicles left indefinitely occupy space and accumulate nothing.
WHAT TO ESTABLISH IN ADVANCE
What your terms say about storage charges and unclaimed vehicles.
WHAT TO TAKE ADVICE ON
Disposing of an abandoned vehicle.
WHY
It cannot simply be sold without following the proper process.
WHAT TO TRACK
Work in progress: jobs started and not invoiced
Parts purchased against jobs Debtors
WHY WORK IN PROGRESS
It is money spent and not yet earned, and it is invisible without tracking.
WHAT TO REVIEW WEEKLY
Jobs completed, invoiced and paid.
