Cash and Collections
Happy Sunday!
It was a rollercoaster week … peaking with the test of our research database and bottoming with hours of collections work.
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This week at Bullpen …
We built a prototype for a research catalog. The Weekly Warmup is growing like crazy, and we have a growing list of all the research that has been released this year. Soon, you’ll be able to browse our research database on the web app.
We codified our new accountability chart. I’m still in charge of too many key business functions, but I’m actively working on finding leaders for the places we need them.
Our past-due balance became out of hand, and I had to start chasing late payers. We’ve had to add interest and threaten litigation … this is one of the worst parts of running a business.
We haven’t had to pursue a client in collections for more than a year, but it’s looking more and more likely that we’ll have two in Q1.
Our contracts allow us to add interest and pursue late payers very aggressively. With a staffing business model, timely payment of invoices is important as our COGS (the amount we pay talent) is very high relative to our revenue. However, we’ve been lax in enforcing the invoicing timelines that are outlined in our contracts … until now.
When running a small business, you typically put out the fire that is burning the largest. This is my new fire.
My pontification …
One of CRE Daily’s emails this week had an article about JP Morgan’s recent investments in timberland. The industry is red hot thanks to the large carbon credit movement happening in the US right now.
One business idea I’ll leave you with …
Big landowners receive massive benefits for owning timberland, even when they aren’t cutting down trees. Simplistically, companies will pay them to keep the trees in place in return for carbon credits.
Who is going to be the first business to successfully pool small and mid-size owners of timberland to provide them with the same benefits?
That’s all for this week! Let me know your favorite collections agency - I need a referral.
✌️📤
Tyler
Founder @ Bullpen