Rule One of Business: Get Paid

Getting paid, you would understand is vitally important at your business because if you are not paid, what’s the point in business?

You might be laughing at the heaps of business people who only get their clients to simply pay when and if they get around to it. I know a businessman who persistently gets bad debts like trophies. For what reason? Very possibly because he can’t bring himself to ask for the money and people just overpower him.

If you allow somebody credit, do so only after they have cleared themselves to you by paying cash on delivery (COD) for a period. Moreover, you can see whether they have the money to pay you – if they don’t then don’t do business with them. Don’t push yourself into thinking “I need the work” or “I need the sales”. It’s ultimately doing the job or providing the goods for zip if you don’t get paid.

If you are the sort of person who can’t demand the payment after the job has been done, try these cheats:
Tell your client that when the job is finished up, you require cash or cheque. They should be likely to have it to hand over at completion and you do not have to request your payment.

When you hand out a quote, be sure your payment terms are plain.

Complete an invoice that has the terms of payment clearly listed and hand the client the invoice when the service is finished. They should look at the invoice and simply know they can pay it off now without you being required to say a thing. Create a “cruel boss” who would flay you alive if you do not return with the payment for the job.

Set up your banking to hook you up with Merchant facilities so you can accept credit cards for example Mastercard and Visa. The large majority of people use credit cards and it would cease the difficulty of the customer not having a cheque account or not having enough cash at the time.

As another option, don’t be persuaded against to keep hold on your goods until you have been paid. Know, until the goods are paid for, they still remain yours.

If you choose to allow somebody credit, be sure you take the following information about them at a time 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 possess all this information, call the bank branch and make for sure that they do have an account there. Then, call all of the trade reference and ask if they pay their debts correctly or if they have had any issues 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.

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One thought on “Rule One of Business: Get Paid

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