Rule One of Business: Get Paid
Being paid, you would imagine is vitally crucial in your business because if you aren’t paid, what’s the point in business?
You may be surprised at the amount of business people who permit their clients to pay up when and if they remember it. I know of a business owner who persistently holds bad debts like awards. How? Most likely because he can’t bring himself to take the money and allows people to use him.
If you permit someone credit, do it only after they have proven consistency to you by paying cash on delivery (COD) for some period of time. Secondly, you need to check whether they have the means to pay you - if they don’t then you shouldn’t do business with them. Don’t fool yourself into the line of “I need the work” or “I need the sales”. It’s damaging in doing the service or providing the goods for free if you don’t get paid.
If you are the sort of person who can’t demand the payment after the service has been completed, try these cheats:
Tell your customer that when the job is completed, you will require cash or cheque. They will more than likely have it on them at the point of sale and you do not need to request your fee.
When handing out the quote, be sure your payment terms are understandable.
Do up an invoice including your terms of payment evidently printed and hand the customer the invoice when the job is done. They can see the invoice and generally assume they can pay the money now without you going to say a thing. Manufacture a “nasty boss” who would skin you alive if you can not bring back the payment for the work.
Arrange with your branch to have you running with Merchant facilities so you can accept credit cards such as Mastercard and Visa. The large majority of people have credit cards and it can solve the issue of the customer not operating a cheque book or not having the right cash in their wallet.
Moreover, don’t be persuaded against to hold onto any goods until after payment has been made. Don’t forget, until the goods have been paid for, the goods are still yours.
If you choose to permit somebody credit, make sure you have the following information from them at a point BEFORE you permit them credit.
- Name
- Address
- Phone number
- Bank name and address
- Account no.
- 3 trade references with their names, addresses and phone numbers
After you have all this information, telephone the banking institution and make certain that they operate an account at there. Then, ring all of the trade reference and ask if they pay their bills punctually or if there are any difficulties with them.
Most people will be willing to tell you if the person is troublesome. If everything is OK, allow them a moderate level of debt, say no more than $500 (depending on your business). Monitor the operation of the account for a few months before allowing this amount to be exceeded.
If you’re looking for a Brisbane web design company or Brisbane SEO company, talk to Search Tempo. Check out their SEO prices today.
Sphere: Related Content