April 2009 Newsletter Bonus Issue
Herbert M. Cannon
April 2009 AEC Managing Partner Newsletter
"Dedicated to helping architects and engineers earn the profits they deserve for their creative efforts"
Welcome to the April Bonus Edition of my monthly newsletter. Earlier this month I published a list of the Top Twelve Steps to take after the layoff. Well it seems like the newsletter struck a chord as I received an unprecedented number of e-mails in response to this list. Many of the responses were humorous in nature and I have included a few of my favorites in this newsletter.
I am also happy to announce that I have just transferred my recent Cash Flow and Collections Webinar to CD and it is now available to order.
I am hard at work tabulating the results of my Incentive Compensation and Bonus Benchmark Survey. I encourage everyone to submit his or her survey before the extended April 22 deadline.
In this Issue:
1. Top Ten List - Top Ten Ways to Improve Cash Flow - Part 1
2. Cash Flow and Collections Webinar on CD
3. Tech Tip of the Month - Roboform
4. Top Twelve List Feedback
5. Incentive Compensation and Bonus Survey - Extended until April 22nd
6. Upcoming Events
Top Ten Ways to Improve Cash Flow - Part 1
In good economic times, collecting your money on a timely basis can be an extraordinary challenge. In tough economic times, it can seem near impossible. Here are some tips to get you going in the right direction.
1. Get a Retainer
Far too many firms are afraid to ask for a retainer and they mask this fear with a seemingly rational excuse. The excuses range from, "this client would never pay a retainer" - to "our competitors never ask for a retainer". However, the reality is, I have never heard of anyone losing a project because they asked for a retainer. The worst thing that can happen is they refuse to pay it. Even if only 25% of your clients agree to a retainer, you will still be way ahead of the game.
2. Streamline Your Invoicing Process
Streamline your invoicing process to get invoices out the door as quickly as possible. Many firms take 3 to 4 weeks to issue their monthly invoices. Sending invoices 3 to 4 weeks after the fact sends the wrong signal - and the signal is that you don't care about the money. There is no excuse for issuing 100% of your invoices no later than 10 days past months end. In fact, 80% of your monthly sales should be sent with 3 days of month end.
3. Revise Your Contract Language
Review your standard proposals to make sure that payment terms are adequately addressed. Be specific about invoicing frequency, invoicing format, payment due dates and the right to stop work for non-payment of invoices.
4. Find out Your Clients Payment Cycle
Talk to your client to find out what are their critical cutoff dates. If your invoice needs to be received by the 5th of the month to be paid by the 30th of the month, make sure it gets there by the 5th. If you miss the deadline by 1 day, it will delay payment by 30 days.
5. Consider Electronic Invoices
Some of my clients are having good experience with sending their invoice electronically. In addition to the client receiving an invoice 2-3 days faster and reducing internal paperwork, an electronic invoice has the advantage of delivery confirmation. This reduces the likelihood of "I never received the invoice" excuse for non-payment.
Dramatically Improving Cash Flow and Collections Webinar - on CD
In good economic times, collecting money on a timely basis can be an extraordinary challenge. In tough economic times, it can seem near impossible. Over the last 25 years in the A/E industry, I have personally developed a comprehensive system to dramatically reduce any company's outstanding accounts receivable. This system is not some untested theoretical exercise - it has been implemented at dozens of firms over the years with outstanding results.
Our recent Webinar, Dramatically Improving Cash Flow and Collections is now available on CD. This fast moving 70 minute Webinar, will show you how to dramatically reduce your accounts receivable and put more money in your bank account where it belongs.
For more information visit: http://www.aecmanagementsolutions.com/products/item7.cfm
Tech Tip of the Month
Roboform -Remembers your Password so you don't have to
Several months ago, I was extremely frustrated with managing my seemingly infinite number of passwords (almost 200). As you can tell from the number of passwords, I spend a lot of time on-line for both business and personal reasons. Virtually all of my consumer and business purchasing is done on-line. On top of this all of my banking, credit card management, bill paying etc., is also handled on line.
Of course, every one of these accounts requires a separate password with different requirement. Some are a minimum of seven digits, others are eight digits. Some require a special symbol - and others forbid it. Some require you change the password at least once a year -and others don't care.
I was desperate to find a better way of managing my passwords when a friend referred me to Roboform. I visited the site, downloaded the software and put it to use right away. I was immediately impressed with the features and simplicity of this tool.
This software enables you to:
- Save Online Passwords
- Fill Saved Online Passwords
- True 1-Click Login
- View and Edit Password
- Print a List of Passwords
- Automatically Generate Secure Password
- Fill in Long Order Forms with your name, address, etc.
Roboform also has a thumbnail option that allows you to carry your passwords with you to use at any computer.
Check it out at http://www.roboform.com/
Top Twelve List Feedback
I received dozens of responses to my Top Twelve Steps to take after the Layoff. Here are a few of my favorites.
Take remaining staff out for happy hour & foot the bill (okay maybe not foot entire bill...)
Have someone monitoring the press, Facebook & other networking sites for crazy ex-employees bashing your company
Monitor and discourage happy faces or chatting to co-workers - No joy allowed! (At least that's what we were told...)
Reconfigure entire floor plan - remember that $18 million you just saved with layoffs? Now spend to redo entire office! Add kitchens with dishwashers! Why stop at mere seating reassignments? (At least that's what my company is doing...)
After sitting through 2-hour all-staff meeting/pep rally, allow staff to have the remainder of day off
Hire the owner's nephew as an intern architect and his spouse as the new head of interior design
If you have any more please send them!
Incentive Compensation and Bonus Benchmark Survey
Are you tired of paying $445 for industry benchmark surveys?
If you are tired of paying outrageous prices for A/E industry benchmarking surveys, you are not alone. My commitment is to produce surveys that equal or exceed competing surveys in every way. There will be charts, tables, graphs and narrative that will allow you to benchmark your company against your competition. The survey results will be presented in a way that will allow you to immediately zero-in on areas of your company that need the most attention.
You are invited to participate in the surveys - and reap the rewards!
Your Reward for Participating
1. Entry into a drawing for a $500 American Express Gift Card. All Survey respondents who complete and return the survey by the due date of April 15, 2009 will be entered into a drawing for a $500 American Express Gift Card.
2. All survey participants are entitled to receive a copy of the benchmark survey results for only $49. The final survey results will be priced at $225 for non-participants. The order form enclosed with the survey. This discount is over $175 off the AEC Management List price of $225 and almost $400 off the Zweig White or PSMJ list price.
Download the Survey http://www.aecmanagementsolutions.com/public/202.cfm
Upcoming Events
Texas Council of Engineering Companies September 11, 2009
Herb Cannon will be speaking at the Texas Council of Engineering Companies Leadership Forum for the 7th consecutive year. The TCEC always provides quality programs for its members. I encourage all professional organizations to check out what they are doing at http://www.cectexas.org
Axium Users Conference October 22-24, 2009
Herb Cannon will be speaking at the Axium User Conference for the 4th consecutive year. Details will become available soon. This is always a great event that is focused on how to get the best use out of your Axium software. There are also multiple breakout sessions focused on industry specific issues. Visit the Axium Website for more details: http://www.axiumae.com/events/userconference09/uc-home.aspx href="http://www.axiumae.com/events/userconference09/uc-home.aspx">http://www.axiumae.com/events/userconference09/uc-home.aspx
Want to Reprint an Article from AEC Managing Partner?
As a publisher of a print or web-based publication, you are hereby granted the right to reprint any article contained in this newsletter with the following provisions
1) The words "By Herbert M. Cannon" must be included immediately following the article title.
2) The following "resource box" is included following or preceding each article.
Herbert M. Cannon, President of AEC Management Solutions, Inc. and Publisher of AEC Managing Partner Newsletter, is a management consultant, seminar provider and speaker exclusive to the A/E Industry. He is available to speak at company meetings and conferences. For more information, contact Herb via e-mail hcannon@aecmanagementsolutions.com. Or visit his website at www.aecmanagementsolutions.com
3) You quickly notify us of any publication, either in print or on the Internet. Notification may be made via e-mail at hcannon@aecmanagementsolutions.com
4) You send us a hard copy of any printed publication in which one Herb's articles appear. Printed issues may be sent to 183 Higgins Road Matawan, NJ 07747
I am looking for guest writers for my monthly newsletter. I you have an idea for an article, please send an e-mail to hcannon@aecmanagementsolutions.com
I hope to see everyone at one of my seminars or speaking engagements.
Regards,
Herbert M. Cannon
Herbert M. Cannon
hcannon@aecmanagementsolutions.com
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