If you don’t get paid you have a hobby, not a business.
We all know it takes time to get paid.
Time is a leveller for all of us. No one person has more time than any other person, so how do you make the time to get paid?
Customer Service – Not Getting Paid
The trick is to think of it as Customer Service not chasing for payment.
By viewing it in this way you are adding value to your customer rather than adding to their work load.Your approach and attitude to your customer will also be very different. You will want to pick up the phone, make that connection stronger and look forward, instead of dreading, making these calls.
4 Must Do Things that Will Save You Time
1 – Review your attitude towards Cheques
There is still some logic to accepting cheque payments.
Many charities require 2 signatures and some banks don’t offer that electronically so they need to pay by cheque. However most businesses have access to online banking now.
Personally, I wouldn’t include cheques as form of accepted payment in my terms. Sometimes though someone might call and ask if they can pay by cheque. It’s up to you if you say yes or no, however think about:
- The time it will take you to go to the bank; stand in the queue; wait until the cheque has been pocessed; get back to the office.
- Cheques can be cancelled up to 6 months after they have been issued, so for 6 months you won’t actually know if you get to keep the value that cheque is written out for.
How much is all of this worth to you? Calculate that figure and there is the administration fee you charge someone who wants to pay you by cheque.
2 – Invoice Daily
Invoicing daily sounds tedious.
However 10 minutes spent daily is a lot easier to keep on top of than having a mountain of paperwork you force yourself to look at once a month.
3 – Make it easy for people to pay you
This may sound obvious, however it is amazing how easy it is to miss the simple things off your invoice.
By including your bank details and your postal address on your invoice, you are encouraging people to pay you directly into your bank and making it easy for them to let you know they’ve paid.
People don’t like having extra work, so don’t give them any.
See this blog for other details you should put on your invoice.
4 – Get the right contract in place
Be specific from the outset.
Specifying your payment terms at the beginning of your relationship, as well as informing your customer the consequences of non payment, makes it easier for customers to commit to paying you.
Your customers already know what to expect from you. They know your terms or how long they have to pay you. They also know how you like to be paid and what will happen if you don’t pay them.
The foundation of your relationship with the customer makes you look more professional and means you all agree from the start what is going to happen.