by Danielle Hayden | Featured Contributor
Let’s get real and talk about our fears over money and more importantly how do we get more of it back in our business.
This interview I did with our bookkeeping client provided her with so much clarity she asked me to share it with you.
Here is what we conquered:
- Learning to overcome challenges in collecting client payments
- Overcome mindset issues around money and why that contributes to your ability to collect payments from clients
- Strategies to increase cash collections
- Practical accounting strategies to use in your business
What are the mindset issues around money that contribute to our inability to collect payments from customers?
We all have mindset issues around money from our childhood. Some of us were taught not to discuss money and that asking for money would come off as rude or unprofessional. We lack the confidence to know our worth and that we performed the service or will perform the service and invoices NEED to be paid in order to perform the service. Take a moment to reflect right now on how your parents spoke about money? Did they speak openly? What was there overall tone?
What strategies can I use to overcome these mindset issues?
There are so many mindset books and strategies out there in the entrepreneur’s space so I want to keep this simple. Remember that you are in business to make a PROFIT! Yes, you heard me. There are so many business owners out there that are so passionate about what we do and helping others that we forget that if we only help other people for free we will not be able to create a sustainable business that generates profits and is able to support your family. You are worth the prices that you laid out for your customers, now hold firm to your mission.
How can I increase the profits and cash in their business?
I firmly believe in the 1% theory. If you can increase your prices by 1%, increase your volume by 1%, increase your collections by 1% and decrease your expenses by 1% can you imagine the amount of profit you would generate in your business? Start taking one action step every day to increase your profits. If you need ideas you can refer to the Profit Planner.
What are some practical strategies that I can use today to increase my cash?
Automate your bookkeeping systems, t ake payments or partial payments upfront before services are performed, accept credit card payments at time of service, automate monthly subscriptions so that they are billed automatically, send automated collection reminders, send out personal messages monthly to any clients who have not paid and stop servicing clients who are not paying their bills.
How do we overcome the mindset issues that creep up when clients do not pay?
This is something that we struggle with. We all know the value that we are providing to our clients/customers and most of us could never imagine not paying our vendors but there are people out there who don’t understand the value or do not have the ethics in themselves or their business to uphold their debts. This is not your burden to carry. That person has their own issues that they need to work through and it likely has NOTHING to do with you and your service or product. Remember to spend more time and energy on your ideal clients who value you and your service and less energy on the people who will not value. Terminate those relationships quickly!