This week in the business coaching I learned the huge benefits of taking payment upfront for services rendered. Many times it is tempting to just send an invoice instead of asking for payment upfront. First, you finish a job or service and when it comes time for payment you send an invoice, then comes the task of taking payment a few days or weeks later. Now it takes a whole day just to track down payments. We are either paying a person to collect payments or taking our time away from growing the business just to receive payment.
The eight hours previously spent calling customers and taking payments is now spent calling leads and completing pending jobs.
As a business coaching program any business owners struggle with the idea of taking payment immediately finishing their job or selling their products. A common concern is that asking for payment will upset customers and lose repeat business. The opposite is true, have you ever gone to the grocery store and refused to come back because you had to pay for your avocados before you left the store? Of course not! You were probably ready with a credit card as soon as the avocados were scanned. The same is true with your customers, your customers expect to pay for the service or product you are selling/providing.
A benefit of taking payment immediately following service is how much of a time saver getting paid upfront is. The eight hours previously spent calling customers and taking payments is now spent calling leads and completing pending jobs. A large portion of time spent every week tracking down payments when it could be spent more efficiently growing the business is enough to convince me to grab a card reader and start taking payments today.
Another benefit is your payment is guaranteed, there are no missing payments from the customer not returning your calls or the staff forgetting to make the call. We have payment immediately following service, nicely tying up the project. Before where there was stress at the end of every month because you are still waiting on payment for a job you completed 3 weeks ago now there is peace.
To recap why we should stop invoicing, now that all pending payments have been received, we have saved time, not just ours but the time of our business coaching staff as well, we can pay all bills needed and have something to put back into the business. Most importantly the customers are still happy and coming back again for their next visit.
Receiving payment for your work is not as daunting as it sounds. Overall the task is as easy as adding three words to your closing statement, credit or debit? Now the clients are happy, you aren’t stressed, your bills are paid and your bank account is growing. The simple switch to receiving payment upfront is possible and once done makes a world of difference for everyone involved.
Be sure to check back each week for more business coaching diaries.