0816_TOEFL-Test-and-Score-Manual-1997

66 ● 201 Great Ideas for Your Small Business
GREAT
Ask for a Deposit
If you want Diane Dunn to play angelic harp music at a
IDEA
wedding, funeral, or party, you have to pay a 50 percent
deposit when you book the date.
“If clients balk, I tell them that once I book a date, I turn away other
opportunities to play,” said Dunn, who lives in Walled Lake, Michigan. She
charges $300 for the first hour and $75 an hour after that.
I love deposits. If you want to book me to speak at an event, I require
a 50 percent deposit to hold the date. No matter what you do, requiring a
deposit is a great way to boost your cash flow. If handled fairly and properly,
it shouldn’t alienate good customers.
Professional consultants often require 50 percent of the first month’s
fee when they are retained. Progress payments are made along the way, and
the balance is due when the project is completed.
If you haven’t required deposits before, here’s what to do. Send a letter
(not e-mail) to all your customers or clients. Be clear about your new
deposit policy, and don’t play favorites. Make sure every customer or
client complies with the policy. Your customers shouldn’t object to paying
20, 30, or even 50 percent down when they place an order or sign a contract.
They know you are running a business, not a charity.
GREAT
Lock Your Supply Cabinet
Profit-meister Barry Schimel shared this idea. If your
IDEA
office supply bill is skyrocketing, and the supply closet
shelves are always empty, try locking the closet. Give the key to one responsible
person, the office manager, or if that’s not feasible, to a couple of
managers or supervisors on different shifts. This way, no one can just root
around for an armload of supplies. Add a sign-out sheet, too, to monitor
who is taking what and when.