One of the things that can kill a business is not getting paid for work performed – no matter what industry. The costs of salaries, taxes, rent and other business expenses keep occurring whether the company has any revenue or not.
Because we so often become friends with our clients, it is sometimes a difficult conversation to have with them if they get behind in their payments. Even so, it is an essential conversation should the circumstances arise.
We have gone to a retail-store mentality to head those issues off at the pass. We now require new clients to pay their monthly fees in advance, or we do not begin or continue working on their behalf. If you were to purchase a shirt, you would have to pay the store before you could take the clothing with you. It’s the same with our professional services, creativity, expertise and resources.
While it may be cold, hard business, it certainly has eliminated our late or non-payment issues.