How to Make Money Fast from Your Small Business - Flight Media Blog
How to Make Money Fast from Your Small Business

How to Make Money Fast from Your Small Business

There is one rule that trumps all others when trying to get paid from your small business:

 

 The faster you get your invoices and payments, the faster you get paid.

 

Collecting money from clients and customers can sometimes be as easy as walking on thin ice with metal cleats. In other words, you need to find an efficient way to make a hard task less stressful.

When billing a customer for your product or service, there are 3 key elements that need to be included in your invoices/billing statements/contracts.

  1. Correct date format and a clear statement of when payment(s) are due.

  2. A clear statement of any penalties that occur if a payment is late.

  3. A specification of any discounts rewarded if payments are received early.

Adding these 3 elements alone, will save you from many awkward or even heated conversations. You have to keep in mind that clarity is going to be the biggest factor when collecting your accounts receivable.

Clear as Dirt

A huge mistake that many young entrepreneurs make when billing customers is not being clear. If a customer can not comprehend what they are paying for and why, they are less likely to take initiative and pay on time. Your billing statement or invoice needs to provide a definite and accurate description of the product/services being provided, and the price per product/service. Here is an example of what not to do:

Jack Wagons

Dog-Crap Cleaning Service

Invoice #80085

Finding the crap in the yard

78 Bucks

Time spent cleaning up crap

192 Dollars

In this invoice (as humorous as it is), Jack clearly shows that he doesn’t give a crap, he just wants his money. Although this is an invoice for a dog-crap cleaning service, it can still be done right. Imagine if Jacks invoice looked like this:

Jack Wagons

Dog-Crap Cleaning Service

Invoice #80085 presented on 11/05/2017

Product/Service Provided

Price of Service Time

Payment Schedule

Pre-evaluation of yard:

  • Duration of Evaluation – 37 Minutes

  • Yard Measurement – 50′ x 35.5′

  • Identified 30+ foreign objects

Charge for evaluation:

$125/hour

TOTAL:

$77.08 USD

Due no later than 7 days after completion of service.

All payments for initial service must be received at the same time.

Foreign Object Removal:

  • Duration of Removal – 1hr 25min

  • Actual number of foreign objects removed from yard– 36

Charge for removal:

$135/hour

TOTAL:

$191.25 USD

Due no later than 7 days after completion of service.

All payments for initial service must be received at the same time.

Recommended Product:

Monthly application of

“Dog-Away Yard Spray”

  • Includes 2 sprays per month

    • Sprayed on the 15th and 30th

**Client accepted product recommendation**

$19.95/month

(First month free)

Due on the 5th of every month

Total cost of Services/Products

Initial Payment

$268.33 USD

Monthly Payment:

$19.95 USD

  1. Initial payment due no later than 7 days after completion of service. There will be a 5% increase of the total cost for every week the payment isn’t received.

  2. Monthly payment is due on the 5th of every month. If payment is more than 10 days late, the spray service will be discontinued.

The point here is to study your industry to learn the trends in billing cycles and payment dates. Most industries allow 30 days for payments to be due, however, your industry may vary. As long as you have a consistent schedule for your companies’ payments, there will be minimal confusion when it comes time to collect.

Secret Weapon: Quickbooks Accounting Software

Bottom Line

The more simplicity and clarity you can provide up front when billing customers for your product or service, the less stress you have on the backend. You want to be clear, but there is a definite line that you need to be careful not to cross.

In the end, you want to get paid and you want to get paid fast. Providing clear billing statements and invoices will assure that the money that is owed to you is paid.

Side Note: The other extreme to this topic occurs when entrepreneurs are payment collecting Nazi’s. Finding a balance between diligently collecting funds and annoying the crap out of people is going to be key in customer/client retention.

About Josh Coffy

joshuacoffy@yahoo.com'
Entrepreneur. Marketing Nerd. Life enthusiast. I am absolutely passionate about what I do. My goal is to inspire others to reach their true potential.
Scroll To Top
Flight Media Marketing & Advertising
Wanna work with us? Fill out the form below and let us know what you need help with!