Do you have the customers but not the income to treat your family or reinvest in the business?
I support and coach people who are thinking exactly this. You have the customers, you are getting the sales but for some reason this isn’t generating the income you thought it would.
There can be a number of reasons for this
- You are giving staged payments when receiving everything up front may be far more beneficial for your business and your family.
- You are getting the sales but forgetting to raise the invoice.
- You raise your invoice but don’t like chasing payment.
- You are finding customers, but they don’t have the financial security you need.
- You are finding your ideal customer, but they aren’t your perfect customer.
Do you relate to any of the above questions?
Would you like more income upfront enabling you to treat your family, reinvest in the business, go to sleep easier as you’re no longer worrying about money?
If yes then please read on, if NO then thanks for reading this far and think about who you know that probably would answer “Yes” and send them this blog.
So here’s what you can do TODAY to address each of points above.
1. You are giving staged payments when receiving everything up front may be far more beneficial for your business and your family.
Recently I wrote a contract for a business coach, during our conversation establishing what she needed in the contract, we agreed she would ask for a payment of 50% of the coaching total for her time reservation fee.
She has recently won a new client. Previously she would have had staged payments monthly invoicing and chasing payment of these invoices every month between September and March.
This time she had a new contract which she sent over along with her invoice asking for the 50% time reservation fee.
The large new client came back to her and said, “Could we just pay the whole lot up front?” Of course she said Yes.
Previously she would never have had the confidence to asking for anything up front, let alone the full amount. She thanked me for giving her confidence, providing her for funds which she is splitting between investing in herself development, the company development and treating the family.
If you think that asking for payment up front isn’t right for your business, can’t be done in your industry or just isn’t right for you, then this article was written for you.
2. You are getting the sales but forgetting to raise the invoice.
Raising a timely invoice is really important – in this article I explain why invoicing as soon as you accept the order, as soon as you’ve sent the goods or even leaving the invoice at the end of your visit will help you get paid on time.
If you don’t understand the importance of invoicing in a timely manner, then get in contact and we can work together to change your understanding of the importance of timely invoicing.
You should also be talking to your customer when you are agreeing the contract about the stages you use to invoice and collect payments.
This may feel a little strange and odd at first, addressing this at the very formation of your relationship, however I can coach you to have those conversations in a way that ADDS to the experience for the client.
3. You raise your invoice but don’t like chasing payment.
This is a common problem for small businesses. We have a very British Mindset which believes we can’t chase an invoice until the date was supposed to be paid has past.
This is the wrong way to think about it. Until you are paid by your customer, you are effectively being their bank account with an interest rate of 0%.
Why should you be funding their business? This is your money and it is OK to call to make sure that they are happy with what you provided and that they have received the invoice.
Then make a follow up call, chat about them, their business and their family. Be interested in them and then during the conversation ask them if they’ve got any problems with the invoice.
By making these two friendly phone calls 95% of your customers will pay you on time.
If you are uncomfortable with the concept of calling about your invoices before the due date, then let’s connect.
4. You are finding customers, but they don’t have the financial security you need.
There are many ways you can easily address this situation.
First thing to do is head over to Google, or some other search engine and type in “company credit rating check free” find a site you like to use. You won’t get as much information from a free report as you would from a paid one, however it will show you in an overview if the company has a “Green” – Good, “Amber” – Be careful or “Red” – Credit not advised rating.
You can use these rating to tailor your terms to each customer. Tailoring terms is part of what I cover during the coaching sessions.
If you do decide to go down the paid for reports, this blog from Nav.com explains how credit scores are calculated and how you can read the scores you will receive.
Graydon explain brilliantly in this article why you should do company credit checks. There are so many options out there for free – do your research before you start working with new customers.
Of course if a company is new or not limited then doing a google search on them may not bring up much information, so you need to be asking them the right questions to get to the truth about how much they can afford to you and how much they value your service.
5 . You are finding your ideal customer, but they aren’t your perfect customer.
This is something that takes time to figure out, it’s a journey that will take many twists and turns. This really isn’t my area of expertise, however working on this myself, I found Laura Lucas from Inspirential really helpful.
Find out more about Inspirential and I assure you it will be a couple of minutes well spent.
If you need any help with this then don’t hesitate to contact me ( https://rachaelchiverton.co.uk/contact/ )