Rule One of Business: Get Paid

Being paid, you would realise is fundamentally fundamental to your business because if you are not getting paid, why are you in business?

You will be surprised at the number of business people who allow their customer base to simply pay when and if they feel like it. I know of one business owner who repeatedly holds bad debts like charms. Why? Simply because he won’t bring himself to ask for the cash and lets people use him.

If you give a customer credit, do it only when they have proved their worth to you by paying cash on delivery (COD) for some period of time. Moreover, you must see whether they have the means to pay you – if not do not do business with them. Don’t push yourself into saying “I need the work” or “I need the sales”. It’s ultimately to do the work or providing the goods for free if you are not getting paid.

If you are the type of person who can’t ask for the money after the service has been finished, try these hints:

Tell your customer that when the work is done, you will need cash or cheque. They will likely have it there at the point of sale and you don’t have to request your fee.

When you send out an initial quote, be sure your payment terms are understandable.

Create an invoice that has your terms of payment evidently listed and hand the client the invoice when the service is finished up. They should take the invoice and reactively understand they need to pay you for it now without you needing to say a word. Make up an “evil boss” who would flay you alive if you don’t return with the payment for the service.

Organise your bank branch to hook you up with Merchant facilities so you can take credit cards such as Mastercard and Visa. The majority of people own credit cards and it could stop the difficulty of the client not having a cheque account or not having enough cash on hand.

Otherwise, don’t be persuaded against to hold your goods til after you have been paid. Know, until the goods are paid for, the goods remain to be yours.

If you decide you’re going to allow a customer credit, make sure you have taken the following contact details of them at a time PREVIOUSLY you allow them credit.

• Name
• Address
• Phone number
• Bank name and address
• Account no.
• 3 trade references with their names, addresses and phone numbers

When you take all this detail, call the bank and make certain that they do operate an account then. Then, ring all of the trade reference and request if they pay their debts punctually or if they have any dilemmas 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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