At the turn of the calendar year, I wrote some blog posts about starting the year off right, including: (i) 2012 New Year’s Resolution: Protection Your Lien Rights and Stop Losing Money; and (ii) Use Zlien And The Lien Laws To Reduce Your Bad Debt in 2012.
Here is the summary: Preserve your lien rights. Avoid receivable problems. Stop Losing Money.
It’s a good idea to stop every now and again and see how you’re doing with your goals and business expectations. I may actually go overboard on this. I have breakfast by myself every Monday morning to go over my goals from the previous week and the week to come. At the beginning of each month I go over financials and budgets. It takes time, and it’s hard to do sometimes in the face of all the regular business fires, but making time for these things really does help.
As 2012′s first month draws to a close, it’s a good business exercise to take an hour or two away from the grind, and go over your successes and failures in the accounts receivables department.
You probably still remember that feeling you experienced at the end of December, when you thought about how burdensome bad debt was for your business. If things haven’t changed in January of this year, they’re not likely to change in the months to come, and that means you need to make a change.
In the construction industry, there is a simple and effective fix, and that’s Mechanic’s Lien Compliance.
The key word in that phrase is compliance. Just like your business must comply with Davis-Bacon prevailing wages, immigration laws and licensing regulations, you should start thinking of mechanic’s lien compliance in the same way. You can do it, but its a discipline.