Save Thousands of Dollars This Year! - Liz Theresa
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7 Tips That Will Save You THOUSANDS of Dollars This Year

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So, entrepreneurs- today, I want to touch on an issue that gets everybody screaming – MONEY. Have you ever had a customer that wouldn’t pay? Every business deals with this. Here are a few ways to manage this situation.

Liz Tip #1 – Don’t push the sale.

If you have to convince someone to invest in your product or service, it is more likely that they will avoid paying you. This could be for a variety of reasons – financial hardship, lack of interest, etc. If they are not into YOU or your business, they will not end up being happy with the investment. Don’t push them into it even if you have the coveted ability to sell ice to Eskimos. It isn’t worth it to work with that type of client.

Liz Tip #2 – Draw up the paperwork.

This can feel awkward if you feel you know the person or have a personal connection with them. Accept that it feels awkward, but do up a contract anyway. This will protect your time and financial interest in the deal and it will also protect your client. Click here for a helpful template, though I’d also include a section called, “Communications Guidelines” where you outline when you are available for communication, how often, and whether you prefer phone or email. Be sure to also stipulate the consequences for late payment or backing out of the contract.

Liz Tip #3 – Get 100% up front; don’t offer installment plans. 

It sounds cruel in this economy… but there is no guarantee of money on the other side of the installment plan. This risk can be curbed by a well-drawn contract (as in Liz Tip #2), but even if you oblige people to pay up, they could run away from you.

Liz Tip #4 – There are no I.O.U.s.

If you’re service-based, never EVER begin work on a project without ANY money. If you’re really bent on doing installment plans, do them. But don’t press a button or lift a finger until you get paid some percentage.

Liz Tip #5 – Don’t write an angry or emotional email.

An angry email can be forwarded, tweeted, shared on Facebook, etc. Let them say hurtful things and live with that. Don’t join in.

Liz Tip #6 – Bill using PayPal.

I do my invoices and payments in PayPal. Why? Not only is it convenient, but it also has this convenient little remind button. So, if there is a payment that is late from a client, hit remind and PayPal will send them a general email about the invoice. If they don’t want to pay, then the only time you’ve wasted is pushing the “Remind” button.

Liz Tip #7 – Don’t cut ANYONE a deal.

If someone can’t afford you or your services, you can offer a discount, but don’t turn yourself into a Groupon. Have you ever seen Say Yes to the Dress? The consultants who work in the wedding boutique ask one question above all others: “What is your budget?” You don’t want your customer to fall in love with a product or service they just plain can’t afford. Doing so sets the transaction up for failure.

 

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