As ABBA once said – it must be funny in a rich man’s world!
Money is what drives us to succeed, how some view success, but it can also cause some mind blowing arguments … so my question to you is – do you make it easy for your clients to pay you?
Many service based businesses often do the work first and receive the payment later. But what if you don’t receive payment – have you looked at what could be the causes? Often the cause is not because the customer has no money or didn’t value your service, but because the customer has a cash flow situation.
So, by making it as easy as possible for the customer to pay you, you will find that you receive your money faster and your relationships with customers is a positive one – which in turn leads to a more healthy attitude towards your services.
In today’s technology-driven world there are a myriad of ways to accept payment; however, the choices you make will drastically depend on your business, your products or services, and potentially your location.
- Some clients of mine still pay by cheque – which is fine, as I can access the bank any day of the week to deposit a cheque. But if you are remote, then accepting cheque payments might not be a right option for you.
- Direct debit or EFT is the most common form of payment these days – but you would be surprised how many people don’t put their bank details on their invoices. This delays payment and usually means you have to chase the customer. Take a look at your invoice format and ensure banking details are clear and complete, along with the expected due date.
- Credit Cards are becoming one of the biggest hurdles to overcome for small business in terms of accepting payments. If you have an online store or physical products, I believe it is a must. But it comes at a price as banks will charge merchant fees for EFTPOS terminals. You can look into other programs such as eWay which is an online gateway to accept credit card payments, but again, monthly fees plus a fee per transaction might not make that feasible either. Do your research on this one to limit any costs incurred.
- Paypal is another option that some business owners forget about. By setting up a business paypal account, people can pay you from their individual paypal account, or linked bank account/credit card. The transaction is seamless, however again, a fee is taken out of the payment received.
- Cash – an oldie but a goodie. Don’t forget to tell people that you can accept cash.
Moral of the story – first: understand your client base. What would they use and be comfortable with and what would they expect? Don’t simply offer choices to please them, but offer a range of choices that you are comfortable with to make it the best and easiest experience possible.
Then you should see your money flowing in the door sooner rather than later.