This episode of the Business Growth Hacks podcast features Whitney Hahn, an expert helping business owners grow while managing their busyness. Whitney discusses the pitfalls of contracts that hinder cash flow for service-based businesses, emphasizing the importance of time-based contracts over milestone-based ones. She shares insights into managing client expectations, project timelines, and recurring billing for improved cash flow management.
Key Points:
Contracts Impact Cash Flow:
Misworded contracts can significantly affect cash flow, especially for service-based businesses with longer sales cycles and client involvement in the process.
Time-Based Contracts:
Shifting from milestone-based to time-based contracts ensures regular billing intervals, aligning with project timelines and client engagement.
Client Communication:
Effective communication with clients about billing schedules and expectations encourages timely feedback and approvals, contributing to smoother project management and cash flow.
Quotable Moments:
“I see a lot of service providers write their contracts in a way that is milestone based instead of timeline based.”
“The clients will pay attention when an invoice comes. If they’ve been sitting on their feedback, they’re getting invoiced for it anyway.”
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