Chapter 6

Get paid for the work

The second most important rule is get paid.

There is no point in doing the work or making the sale if you do not get paid or you do not get paid in the normal terms of trading.

Early payment

• Always try to get the money up front.
• Deliver the invoice with the goods.
• Ask for deposits.
• Inform your client of the payment terms when receiving the order.
• Follow up by phone.

I know of several businesses, from manufacturers to professional people, who don't have an overdraft because they get the money before they supply the goods and services.

By now I am sure there would be some scepticism about rule 2 and it is not always possible to get the client to pay until 60 or 90 days after the supply of goods or services because it is the industry average.

But just because it is an industry average does not mean that your business cannot educate your clients to pay for the product or service in a way that will enhance your cashflow.