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How a Home Service Business Scaled to 100 Million by Fixing Collections
Description
Episode 95 of Scaling Up digs into the often-overlooked operational bottleneck that holds back small service businesses: collecting payment. Lucas and Luna walk through the real story of a 15-person pest control company in Phoenix that grew to over $100 million in revenue by overhauling its accounts receivable process. They discuss how the owner, Maria, switched from net-30 terms to real-time payment capture, automated lien waivers, and built a credit-risk scoring system for commercial clients. The hosts break down the specific metrics: days sales outstanding dropped from 47 to just 11, bad debt fell below 0.3%, and cash flow funded a 5x expansion into three new states. The episode explores why most small businesses treat collections as an afterthought and how a systematic approach can unlock growth without needing more sales. No jargon, just practical lessons from a real mid-market ascent.