Money through the business.
WHAT THE PATTERN IS
Staff paid monthly, clients paying later.
WHAT THAT PRODUCES
A gap that grows with every contract.
WHAT TO CALCULATE
Wage cost before the first payment on a new contract.
WHY
Taking contracts you cannot fund leaves staff unpaid.
WHAT TO NEGOTIATE
Payment terms as short as possible Invoicing immediately at month end A commencement payment on new contracts
WHY A COMMENCEMENT PAYMENT
Initial cleaning, equipment and materials are front-loaded.
WHAT TO TRACK
Invoices issued and paid, by client Days outstanding
WHAT TO DO ABOUT SLOW PAYERS
Address it promptly, and formally if it continues.
WHAT TO ESTABLISH
What happens if payment is late, in the contract.
WHY IT MATTERS ACUTELY HERE
You cannot suspend service without leaving a building uncleaned, which harms the occupants.
WHAT TO DO
Give proper notice, and follow the contract.
WHAT TO MONITOR
Margin per contract.
HOW
Actual labour hours and materials against the contract value.
WHAT THAT REVEALS
Contracts that are losing money.
WHAT TO DO ABOUT THEM
Renegotiate scope or price, or exit at renewal.
WHY EXITING IS LEGITIMATE
A loss-making contract consumes capacity that a viable one could use.
WHAT TO REVIEW MONTHLY
Hours per site against estimate Consumable cost per site Collections
