Business involves money, if it doesn’t it’s a hobby.

Business involves money, do you get paid?

Being British we don’t like asking for money, but if you want a business rather than a hobby, you have to get get paid.

It all starts with expectation management. When you start working with a customer, you set out project expectations, you agree time lines for completion of the project and you must also set out your payment terms.

There is a common misconception that to get paid you have to
Wait until the invoice is overdue
Then pick up the phone and say “You’ve not paid me, when am I getting the money?”

In fairness credit control is not about this at all, it is about customer service and building on the relationship you already have with your customer.

So how should you be chasing the invoices you’ve raised?

A couple of days after you’ve invoiced
Yes it is early but you are calling for a chat, to make sure your customer is happy with your product or service, to learn something about them and to confirm they have received your invoice.

Half way through your payment terms
Another quick call to see how an event you learnt about in their life went, see if you can help them at all and to check there are no issues with the invoice they confirmed they received.

Payment due date
If they’ve paid (which if you did both steps above around 95% of people do) then ring them and say thank you. If they haven’t give them a quick call, have a chat and they will probably say, “Oh yeah I need to pay your invoice”.

You’ve got paid without asking for money.

Chasing outstanding invoices is about building a relationship. By building these relationships you have a business, if you don’t get paid you have hobby.

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