Most of us begin our working life as an employee, there are regular paydays, paid leave, sick leave and many other perks. When we go out and work for ourselves it is all a bit different.

The first major difference is that the money coming in isn’t quite as regular, even if we have regular work. Invoices are a tricky part of running a business and getting others to honour your payment terms can be the difference between the success and failure of your business. So here are some tips on how to get paid on time:

  1. Be very clear about your payment terms to make sure your clients know what they are
  2. Ask your clients to match your payment terms, and if they won’t make sure you account for this when planning your budget
  3. Include a due by date on all invoices (platforms like Xero won’t even let you generate an invoice without a due date)
  4. If you have long payment terms don’t be afraid to send a reminder, people do genuinely forget, especially if they got the invoice a while ago. Also don’t shy away from chasing overdue payments, you did the work, you deserve to get paid
  5. Do unto others as you have them do unto you. This is more of a lifestyle decision than a tip but if you want people to pay you on time, make sure you are paying others on time. If nothing else, at least you will know you have the moral high ground when you are chasing up late payments from others

Not getting paid on time is one of the biggest issues facing businesses today and there is no easy answer to how to always get paid on time. The key is to be proud of your work and know you have delivered value to your clients. It is much easier to ask for payment when you feel truly justified in doing so.

Want to hear more about how we can help your business? Contact us today.

When we see business people pitching on Shark Tank we hear them talk about turnover, gross and net profit, revenue, forecasts, sales and all other manner of financial measures. What we don’t ever hear is: What is your hourly rate?

This is a crucial question that not many people ask and not many people can answer. Whatever business you are in, you need to know the answer to this. If you work in a business then your time has a value. If you don’t know that value then how can you be sure you are using your time effectively?

If you know your hourly rate you can start to calculate what your daily routine is costing your business. Is spending an hour a day doing email admin and calendar appointments worth the $26,000 you are investing in it each year or should you hire a virtual assistant for $50 an hour, have more time and be able to focus on revenue generating actives? When you work out how much you are investing in marketing do you include the hours you spend at networking events? Could you do more remotely to save on travel time? Every hour in the car is costing you a $100.

If you know your hourly rate you have the foundations to work out your value. If you have a good grasp on how long a task takes you as well then you have a pricing model that will help you work out how much you should be charting clients. If you look at your work day and work out where you can outsource to give yourself more time and save money overall you are on the road to success.

Want to talk more about how to get the most value out of your time? Email us on info@theconsultantscommunity.com.au today and we can set up a meeting.