Many business owners are scared to chase outstanding money in case their customers say no, or that they might get angry or they are afraid if they put too much pressure on them, they may ever want to do business with you again
The reality is that you’ve done the work so you deserve to be paid. You were never designed to be a bank for your customers.
Here’s three things that can help you collect some of your outstanding money today:
1) Make it a Priority
This is all about putting time aside to collect the money. Often this is something that we know we should be doing, but we never have time for. Start by making a list of the people that owe you money and then get started following up right away.
You’ll be surprised how just by calling people that you’ll start to collect more of your outstanding money because you’ve actually made it a priority. Just remember, if someone is getting paid ny your customer it might as well be you.
2) Be Firm and Fair
When you call be firm and fair.
Your initial call needs to include confirming that everything’s okay. Sometimes they’re not paying you because they’re not happy with part of a job or not happy with the product or service that you’ve delivered, so it’s better off sorting that out up front.
Make sure you hold them to a commitment to a time frame. For example, that they commit to pay you X dollars into your bank account by this Friday. Make sure the commitment comes from them and repeat their commitment back to them for their agreement.
And the next part is super important…
Make sure you hold them accountable to their commitment and if they have not paid by that date, make sure you follow them up on that date. Show them that you will be the squeaky wheel that will need to get oiled, that you will not go away and that you’ll be following it up. Be persisient and consistent. A good idea is to put these times in your diary.
In each conversation take notes of what they have committed to and with each call you have you will need to escalalte the intensity. For example, your initial call may just be a friendly check-in call and if they miss that you start to get firmer with them, and then after that, you start having demands or other notices. You escalate each time but always be firm and fair.
3) Have Payment Options
Having payment options can increase your chance of getting paid. For example, could they pay on a credit card so you got paid right away. Could you offer them a payment plan so that they could pay it off over time. A little bit each week is better than nothing at all. You may also want to check out companies who can help you do this. They’ll take on the debt. They’ll pay you money upfront, and then they’ll collect the payments off the person often at an interest rate.
So just to recap, to collect money off the people who owe you
- Make it a priority
- Be firm and fair
- Consider payment options.
By following these steps you can put more money into your bank account and take away some of the financial and cashflow pressure. That way you can start to focus on building and growing your business.
P.S. Whenever you are ready here are 4 ways we can help you build and grow your business:
1) Download your copy of 3 Proven Tactics That Give You 5 Hours Back in Your Week
This totally free guide includes tips, time-savers, and expert advice on how to immediately claim back 5 hours of your time each week. Inside you’ll discover 3 proven tactics to stop time being wasted in your day so you get more done each week. To access the guide click here
2) Watch the Business Freedom Formula Video
In the video you’ll to discover the step by step blueprint we use to help small businesses create their version of business freedom. This could be simply streamlining your business so it runs more efficiently, increasing your profits so you have more choices or setting your business up so you can have time off without worrying that it is all going to fall apart. Click here now to watch
3) Book a 10 Minute Exploration Call
If you would like to explore how Biznostics can help you run and build your business, then book your 10 minute exploration call. On the call we’ll find out a little bit about your business and work out if and how we can help you. Book your call here
4) Join our Business Freedom Program
The Business Freedom Program is designed for business owners who feel stuck in the day to day running of their business and their business is not running as efficiently as they like. It helps you make your business much more profitable, much more efficient and much more enjoyable to work at. We are putting a new group together next month so if you would like to build a strong and successful business email us here with ‘Business Freedom’ in the subject line.