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Getting paid … regularly

In January, my daughter came into my office. I had the heater on – she has the same heater in her bedroom.

(Photo from https://unsplash.com/photos/B-gVgpUdGtg?utm_source=unsplash&utm_medium=referral&utm_content=creditShareLink)

“You’ve only got it on low” she said.

I said “yeah – I don’t put it on high very often”

“I keep mine on high all the time”

“Yes, I know – you cost me a fortune”.

“Oh, I never thought of that” she said, leaving the room, chuckling to herself.

Money isn’t a goal for me. But being able to stay warm when I’m cold (or for my daughter to keep her room sweltering) is.

For that I need to get paid. Regularly.

Because having one good month and three bad months isn’t enough. It makes me anxious.

Having a consistent income, knowing that I’m going to be OK at the end of this month and the month after – that’s a good thing. And I’ve put deliberate systems in place to make it happen – it’s not yet 100% and I’m still short of where I want to be, but I’m getting there. Step by step.

What about you? Is your income a rollercoaster or is it as flat as Norfolk?

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So your client keeps ghosting you.

You ask for feedback and don’t hear back from them for weeks. And then they reply with “oh I thought I told you it was approved”.

Even worse, they leave invoices to go unpaid.

Work is slow and they (eventually) pay well but how do you deal with this?

First – I would make sure your contract details how you communicate and how you get paid. If you don’t have a contract get one, NOW!

Second – I would explain that all communications have to go through a project management system; something like Basecamp or Asana. That way, when you need something from them, like an approval, you can set them a reminder and it will ping them until they respond. And most systems keep an audit trail so you can see (and prove if necessary) that they didn’t reply or react to your questions.

Put these in place, give them a fixed time period (say 4 weeks) to improve how they respond and if they don’t then call it a day.

That’s how I would deal with it. What about you?

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Do you spend too much money?

Some of us like spending money. I do. I don’t even know where it goes, it just slips through my fingers, like Queen’s head flavoured water.

Others of us are more … frugal. Only spend when we have to. Make sure we evaluate every purchase. No rash decisions.

If that’s the case, then firstly, congratulations. Your personality makes you better with money than I am (which is why I use these simple systems to keep myself under control).

But, if that’s the case, what can you do to shore up your business for the months ahead?

Well, firstly, check out your cashflow. It’s step one in my process.

How much revenue did you have over the last 12 months?

How much did you pay yourself?

How much did you pay in tax?

How much did you spend on everything else? Rent, wages, marketing, coffee?

Figure out each of these values as a percentage of your revenue.

Is your “everything else” spend greater than 50% of your revenue?

If so, you can afford to make changes and run even leaner.

Find out how with a £99 Instant Assessment and Profitability Plan