One the final key pieces that I changed in my business when I attempted to overhaul the way money worked in my painting business was changing to weekly invoicing.

In the past I would take a large deposit - 25 to 50%, a progress payment on large projects, and final draw upon completion. I operated that way for 12 years or so. As mentioned in part one, the large deposit carries risk for both the homeowner and myself as the business owner. The large span between deposit and final payment also caused stress on cash flow because I often have little control  on the project. There were times where general contractors would botch the scheduling or change specs and there went my profit. Other times homeowners would take 12 months to complete the other trades prior to me returning for final coat. Even with a 50% deposit, most of that goes to paint and materials, other job costs like fuel, business operating expenses and a little bit of labour. So I quickly found myself upside down on projects and that could last several months sometimes. Not ideal...

The decision to stop accepting large deposits had a ripple effect on the finances of my business in many ways. 

The most significant adjustment that resulted was that I was no longer comfortable purchasing paint for my client's projects. It was too risky. Customers frequently change their mind, delay their projects, do it themselves, hire someone else, stop returning phone calls, or are indecisive about colours and sheens. 

So with no or minimal deposits, it freed me from purchasing paint. This is a big change for a painting business. Most painting companies include paint in their quotes. This way they have more control over the materials they use and it can make things more convenient for the client.  

But does it have to be this way?...

In an earlier post, I discussed the importance of Respecting Capacity. 

But I've come to appreciate another facet of capacity that relates to our business - viewing capacity as an asset in your business and leveraging it for maximum profit. 

Used to be that I got nervous if I was booked up for less than 3 weeks in advance. I was used to being booked 6 - 12 weeks out and that demand felt good, felt secure. 

But these days... 

You might be thinking about taxes at this time of year. And that maybe causing you some stress. 
Or you may be feeling taxed by the stress of a busy painting season just ahead.

I've been thinking about work stress recently, particularly about the toxicity of stress and the toll it takes on our health, relationships and general job satisfaction. Stress is real. The effects of stress can be as simple as being more irritable to more complicated - like the inability to sleep properly, addictions, memory loss, a compromised immune system. Stress can even lead to heart attacks and death. My observation is that some of us don't consider stress enough when looking at jobs. For me, I need to be more intentional about limiting it's influence in my work life where possible.

We are just painters after all, not surgeons, so why all the stress? Is it necessary? What factors lead to some projects being more stressful than others? 

Governments tax behaviours that they deem unhealthy for individuals or society, to reduce consumption/exposure and raise money to finance the side effects. So...why not tax stress in your life, particularly in your business? Add a surcharge to jobs that involve more stress, put a premium on that stress to discourage and reduce the amount of stress and raise money to deal with the consequences of stress (vacation, massage, therapy, date nights, exercise, healthy food, etc...).

With that in mind I created a Project Stress Analyzer and Tax Calculator. I fill it out as part of the process for every project I quote in 2017. In fact, I print a bunch of these sheets and use the back side to make my notes during the site visit. If a project has an average (or lower) anticipated amount of stress there is no premium tacked on. But for every degree of stress above average I add 2% to the quote, to a maximum of a 100% stress premium... 

Hello from Praha!

My brother-in-law has been a painter for close to 30 years and early on when I started he gave me a simple peice of advice that has proved effective...