Here is my sixth blog post covering the subject of getting paid by your customers. Again, I draw my writing from the article, “How to Collect from Anyone (Even Enron)” found in Inc. Magazine,
Way to get paid #6: Bill Based on Milestones. Avoid billing at monthly intervals if you can. After all, you’re not the phone company. Work from milestones, not months and tie your billing milestones to tangible deliverables. A contracting company doing home building generally coordinates its efforts around milestones, The contractor often pays its bills using milestones such as paying for concrete after it is delivered and poured into place. You may find that you too have “cost milestones”, so why not bill your customer based on these milestones. This allows the cash coming in to be timed with the cash going out – simple as that. So, bill based on milestones.
“If the operation is prolonged the resources of the state will not be equal to the strain” — from The Art of War by Sun Tzu.
In other words, “You cannot expend resources without replenishing them!”