Keep the Money Coming In

As you know by now, I am a big fan of systems and automation. There is nothing more satisfying for me than to walk into a client’s business, systemise it from beginning to end, leaving my client with more time to make more money, spend more time with the kids or take a holiday.

Recently one client called saying she needed help with her invoicing procedure. We set up a 90 minute Focus Call during which I discovered invoices were being sent late, or with incorrect amounts, or even worse - she forgot to send invoices out!!

My client’s story has a happy ending as a result of our coaching session, but this same scenario is more common than you think. It’s great if you are the consumer, waiting for your big bill and never getting one. But if it is you with the business to run and you’re not getting paid, it’s potentially fatal, right? The key is to develop a billing system so that you handle money collection the same way every time you do it. Think about it once, put the process into action and then monitor it regularly.

Here are five ways to put more cash into your pocket.

1. Get your customers to pay upfront
If you set the expectation with your clients up front, many will be happy to pay you in advance. If you are not comfortable with getting payment in full, consider getting a deposit.
I have a policy whereby if I haven’t received payment in full before our coaching sessions commence, I will postpone or cancel the session.

2. Send invoices regularly and make sure you are paid
Pick an invoicing day such as the 1st or 15th of the month. Set that date on the calendar and do all billing at once. Make sure you have a system in place to make it simple to create invoices.

3. Automate, automate, automate
Some clients are fantastic at paying promptly and then there are the repeat offenders, always late. With these clients, try sending a friendly reminder email or making a quick call a week before the payment is due.

4. Make an effort to collect
Never assume clients are going to make payment to you a priority. Even if after the reminder they still haven’t paid on time, you need to have a system in place for late payers. For example, one week late might result in a phone call, email or fax. Two weeks late means you will ask they pay by credit card. Three weeks late and they will be ‘blacklisted’. You are entitled to your hard earned cash. If you have to, turn your invoice over to a debt-collection agency.

5. Ensure your money actually gets to the bank
Have you got cheques sitting amongst the paperwork on your desk? Is there money sitting in your Paypal account that you haven’t cashed out? Are you reconciling to make sure your merchant account payments made it to the bank? A client once said her bookkeeper caught a large credit card payment that the bank “forgot” to credit to her account. Reconcile regularly and deposit regularly.


© 2009 90 Degree Coaching Ltd.

Kirstie Gillon-Wood is Director of 90 Degree Coaching Ltd., a company devoted to supporting women wanting to create independence, and achieve personal and professional success. You can learn more about Kirstie’s products and services at http://www.90degreecoaching.co.nz.

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