Small Business Insurance Information
Jeremy Amstadt
Alliance Insurance
N71 W23321 Good Hope Road
Sussex, WI 53089
(262)246-9517
UW-Madison's Small Business Development Center
Seminars
The SBDC offers a full range of business management seminars for both established businesses and start-up companies. Our seminars offer excellent value; fees cover the cost of materials and instruction. For more information regarding these year-round courses or to request a catalog, call 608.263.7680, or check us out on the internet at www.uwsbdc.org.
Small Business Development Center
Solutions for Small Business
Grainger Hall, 975 University Ave., Madison
Sponsored by UW-Madison School of Business Small Business Development Center
To register, call 262.3909. For more information, call 608.263.7680.
Business Counseling
For established businesses that need additional help, you can rely on SBDC's Business Counselors. At no charge, our counselors will help you understand how to solve specific business problems or capitalize on business opportunities. Counselors can help you fine-tune your business plan, streamline your financial records, improve your operations management, resolve specific human resource issues, develop a winning marketing plan, and more. SBDC's Business Counseling is funded by the Small Business Administration and is free of charge. For more information, call 608.263.7680.
Classes are held in Madison. For more information or to register, call 608.224.1404.
Workshops hosted by the Wisconsin Women's Business Initiative Corporation
The following classes are held in or near Madison. For more information or to register, call 608.224.1404, or go to www.wwbic.com.
Unlock the Secrets of Selling to the government
Starting Your Business Series
Business Financing Seminars
Discuss your business idea, planning, and financing options with a WWBIC representative. Call for information.
Free Local Career Service for Madison
Helping Local Employers find Home-Town Talent
Careerfile.com, an award winning pioneer in on-line job and resume matching since 1995, has a new free local initiative to promote local hiring. Chamber members in the Madison area can log onto www.careerfile.com/madison_wisconsin.htm for free unlimited job posting and resume searching of local candidates.
In addition to the free local service, Careerfile.com will continue to offer low cost multi-site regional and national service at rates as low as $25 per month. Deemed the premiere discounter of the online career sites, Careerfile’s CFO Welch says, “Careerfile appeals to businesses who want a cost-effective alternative to the “monster-ous” fees charged by most of our competitors. Careerfile is making over 500 local sites completely free to encourage local employers to look for hometown talent first. Our goal is to introduce as many local businesses and job seekers as possible to the new world of internet hiring by offering a meaningful service geared to local needs.”
Election Site Available to Small-Business Owners
The National Federation of Independent Business has created an election-oriented website at www.smallbusinessvotes.org to help small-business owners evaluate candidates running for state and federal offices. The site provides small-business-related voting records of state and federal candidates, primary election schedules, political convention dates, and voter registration information.
Your Business: How to Get Paid on Time
Originally printed in CPA Client Bulletin
Running a business involves three crucial steps you must take with your customers: reaching them, getting them to buy your product or service, and getting paid by them. The last step--getting paid—is often the one that makes or breaks a business. Without proper payment and credit procedures, even the best of businesses can find themselves falling on hard times.
Create an Overall Payment Policy
The first step is to create and enforce clear credit and payment terms that cover all types of customers and all the products and services your business offers.
Will you require a deposit or retainer? How large a deposit should it be?
What is your standard payment schedule? Will it be full payment only after completion or delivery, or partial payments throughout the project?
How does your business define completion? Is it based on a set of criteria, or solely on customer satisfaction?
Will your business extend credit? To what extent?
Will credit be extended to first-time customers?
Will you give a discount for prepaying?
Are there any circumstances in which a past due account will be sent to a collection agency?
What will be the policy regarding disputed bills? Will you give a refund for returned items or only a credit?
Evaluate the Creditworthiness of All New Customers
First, you need to have a set procedure or policy to determine if and when you will extend credit to a new customer. The screening and conditions should be proportional to the amount of risk you are taking. If the customer’s initial purchase is a small amount and the risk is minimal, then you can probably take your customer’s word for their ability to pay. However, if a new customer places a large order or makes a custom order, you will want to do a thorough credit and/or reference check, including banking and other seller references, and require a deposit. Or maybe you may want to require a deposit only if the customer does not fully meet your credit test, but you still want the business. Many businesses have “starter accounts” that require new customers to put 50% down prior to delivery, and payment in full within 30 days of completion or delivery. Once the new customer establishes his/her credit record, you can end the starter/new account status and extend your regular credit terms.
Create a Tracking System
A tracking system is merely a way to make sure the unpaid receivables don’t fall through the cracks. Most accounting systems—whether custom-made or store-bought software—have this function. A tracking system should also give you a heads-up that an invoice is more than three months past due. This is especially helpful when you are busy focusing on other aspects of your business; you may not realize that a normally promptly paying customer has suddenly fallen in arrears.
Another side to the tracking system involves following up with the customer by either sending a letter, an update, or phone call. If you call, make sure you log the date of your call so you have a record. Most business owners hate this aspect of their business, but it is essential, and most customers, if they have simply overlooked it, don’t mind a gentle reminder. If the late payment is due to something more serious, and your reminders and follow-ups go unheeded, you now have a record and can start planning your next steps, such as referral to a collection agency.
Build Insurance Into Your System
Remember that you are more likely to get paid while the customer still needs you. If you’ve done all the work, the customer will be in rush to pay you. If part of your project is left to do, or not all of your product has been delivered, the customer is more likely to pay promptly, and minimize your risk.
If you have a customer that refuses to pay because he or she is dissatisfied due to a minor complaint, insist on the client paying for the part of the product that is not in dispute, while trying to address the customer’s concerns. This scenario is also a good reason to have a payment policy that is comprehensive and clearly expressed to the client. If you have stated your policies beforehand, there is less room for a customer to withhold payment arbitrarily. You can also avoid problems by giving incentives for prompt or early payment, such as a discount for prepayment. A comprehensive payment policy will help avoid problems with customers and avert cash flow issues for your business.