You bill in thirds. Your costs don’t arrive in thirds.

Milestone billing is usually set by convention. The cost curve underneath it is set by the work, and the gap between the two is what you fund.

By Steve 5 min read
Abstract bridge artwork for You bill in thirds. Your costs don’t arrive in thirds.

Most project businesses bill in a pattern inherited from somebody else: a third on order, a third at the midpoint, a third on completion. Or 50/50. Or 20/40/40. The pattern gets set early, survives every price increase, and is defended as “what the market expects”. Meanwhile the cost of delivering the work lands in a shape that has nothing to do with the invoice schedule, and the difference between the two shapes is the amount of cash the business has to find before it earns anything. This is not a…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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