The Solution To Ending Month-End Chaos

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“Month-End Chaos”

You know what that is – it’s when everybody runs around at the end of the month, pushing as hard as possible to get as many products or services out the door so they will get billed.

The problem is that, once you get into that pattern, it’s very difficult to stop. It seems like every month-end gets worse.

There are several reason why this is the case, but here are the biggest culprits:

  • You “Rob Peter to pay Paul”,  billing project services in the month before they are done
  • You make special “month-end” deals to your customers (heard of Pavlov’s Dog?)
  • Your primary sources of revenue are product or project based.

When you bill services before the project is actually done, you are essentially making your technicians work “for free” in the next month.

When you make special “month-end” deals, you condition your customers to hold off purchasing decisions until the end of the month to get the best deals.

When your primary sources of revenue rely on sales of products or projects, then you are at the mercy of your sales team – if they don’t sell, you don’t make money.

 

The solution to the “Month-End Chaos” is building recurring revenue sources that can fill in the gaps and stabilize your billing. I explain why recurring revenue is so important for your company in this post.

You don’t have to have a massive managed services machine to build recurring revenue – it can be something as small as a targeted management contract attached to new projects.

You will be surprised at how quickly those service amounts add up.

The sooner you start, the quicker you won’t have to worry about “Month-End Chaos” any more.

 

PS – For those of you who rely heavily on product and project sales, you will want to read my post on 3 Nails In The Coffin – The New Paradigm of Managed Services

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