How to Make Sure Your Invoices Get Paid

As the economy continues to splutter, more of your clients are going to struggle to pay your invoices.  No surprise there.

In fact, those who’ve long been in the habit of using YOUR money to run their businesses (or their lifestyle) will stretch things even more now.  Some will default.

This begs the question... 


How do you make sure you get paid in full, on time?

The best solution of course, is to get paid UP FRONT.  And more on that in a moment.

Regardless though of what your payment terms are now, getting to the front of the payment line is a function of how well you’ve set up the expectation of getting paid. ‘Laying the ground rules’ on being paid.

If, at the beginning of the business transaction, your client senses a casual approach to being paid, that’s what you’ll get.  In contrast, by firmly but nurturously explaining your terms BEFORE providing the service, and then following up immediately if the client misses a due date, you have a far higher likelihood of being paid.

‘Laying the ground rules’ on being paid is something many businesses are uncomfortable with.  And they pay the price later in tardy collections, which then create their own cash flow crises.


Why not get paid up front?

Our own invoicing policy is an agreed first monthly instalment paid before we begin a project, and further instalments at the start of each month.  If it’s a ‘lump sum’ project, we require 50% of the funds upfront.

Of course, to be paid up front, clients need to trust your capabilities to ‘deliver’.  And trust that you’ll go all out to give them an amazing result. 


But the key point is this. 

Create the expectation of being paid up front, educate your clients to the value you’ll deliver, and most will accept this graciously.

On the other hand, if you present your product or service merely as a ‘commodity’, something your clients can get anywhere, you’ll simply invite them to shop around for another supplier who will give them 90 days … or 120 days.


Bottom line?

Be passionate about what you ‘deliver’, and about the value you bring to the table … communicating your ‘value package’, your legendary service, your responsive support, your problem solving strengths and so on … and you’ll create the right expectation in your client.  They simply won’t go anywhere else. 

The alternative is to be a commodity.  And that means, getting to the back of the line!

World's Most Successful Business for his Industry

Sometimes in our rapid pace technology driven world, we miss the most obvious basics that can create a competitive leap.  Now I know you’re NOT in the dry cleaning industry.  But when someone in a crowded industry with 8% of the outlets has 40% of the business, maybe the ‘basics’ have something to teach us ...

Mel Shapiro was a superstar in the crowded US dry cleaning industry (he had 126 competitors across the country!). Even though he had just 8% of the outlets, he managed to secure 40% of the business. 

In fact, his main location did more business than any other single outlet in the WORLD!

So what's the secret to his extraordinary SUCCESS?  It's not the way his factories are run.  It's all about his customer interaction.

Some brief examples. His competitors have their management desk out the back. He places his IN FRONT of the counter. On the CUSTOMER’S side! His competitors' teams make do with casual clothes (consistent with the industry). He wears a suit. 

It's his mindset, and the mindset of his team, that creates success, and it can work for any industry.  He gives four rules of success:

No. 1 KEEP A SMILE ON YOUR FACE.

“Happy people work better. They convey that message to the public. (It’s as if) you are the conductor of an orchestra… What are you conducting? Is it a funeral march? Or is it a happy tune? You must have a positive morale and everything you do must give that feeling…”

No. 2 KEEP YOUR PROMISE.

There’s that “DO-WHAT-YOU-PROMISED-YOU-WOULD-DO” again. Yes, there’s that “DO-WHAT-YOU-PROMISED-YOU-WOULD-DO” again.  By the way, not only should you ‘deliver’ as promised, make sure your clients KNOW you delivered.  That’s a key distinction.  TELL them or how can they value what you’ve done for them?

No. 3 MAKE A GOOD PRESENTATION.

“What does that mean? You have to clean up your stores or office. Your sign programs have to be good. Get rid of that cluttered look. Develop a 'distinctive' look. Hire a graphic artist, and be prepared to PAY for quality…”

No. 4 DO GOOD QUALITY WORK.

“Yes, it’s important,” stresses Shapiro. “But, the difference between one supplier and the next isn’t THAT great. The secret is to capitalise where you can project a dramatic difference.”

What are the messages in all of this?

From an advertising perspective, it’s clear that until ALL these things are in place, the advertising proper can’t do its long term job. As well, it’s evident that, unless you have a particular flair in the area, it pays to call in professionals to look at your image… décor, signature, uniforms… and staff training.

Wouldn’t it be nice to steal the march on your competitors… suddenly appearing one day with a brand new “packaged image and marketing thrust” that’s ten years ahead of them? I don’t know about you. But the idea is irresistible to me.