Getting paid is our reward for doing a good job.
It’s no joke not getting paid or getting paid late by customers. We have been through six of these downturns & five upturns since we started. This can always be tough, even in good times,
How to ensure you get something and don’t get stiffed
1. Ask for something before you start, a deposit. This puts you both on record that payment is expected.
2. No work/no products, no contract. It may not need to be a contract but it needs to be something that says that they agree with the terms of the deal. I have tried starting without something signed and it was always a big mistake. Don’t do what I have done. Be strong. Resist this temptation. It will lead you off course.
3. Know your break even/bottom line for the work or products. Be prepared during these times to give a little if you can for the long term health of your relationship with clients. Just try to make sure you always get at least what you spent out of pocket and its share of the overhead. You may not be pleased with the outcome but you can live with it.
4. Know what you can and can’t do to collect if they do not pay. There are regulations that prevent you from adding fees to bills other than a “reasonable” administrative fee. Check your contracts to make sure you are not in violation.
The Business Success Center is planning a free webinar, “Getting Paid”, this fall. If you are interested in attending to learn more things you can do to make this “necessary evil” more profitable and palatable, please call us at 512/933-1983 or email me at triplett [at] ownersview [dot] com.
All good tips, for sure. I’d like to add one of my own. *INVOICE*! I’ve been really bad about this, as have several other small business owners I know. You’d think this would be a non-issue, but it’s not. I think it’s mostly the pain of having to get all the project details together to actually put together a proper bill, but I don’t really know. All I know is too many of us procrastinate invoicing, which is by far the best way to ensure you never get paid.