Starting up your own business is often overwhelming enough.
But, what do you do when you provide services to your customers and then they don't pay? Unfortunately, many home based businesses are the victims of this situation.
So, how can you not let the customers get away without paying? The truth is, there are several things you can do.
First and most important, keep all documentation of the communication with your customers and clients.
Create a separate file for each client on your computer and keep copies of all correspondence.
Should you ever get in a situation where the client hasn't paid and it looks like small claims court may be your only option, you will need this documentation as proof.
Home based businesses that do not keep good records will risk losing out on any money due.
Second, always require new customers to pay up front for your services.
Provide them with a written agreement stating that they have paid and give them the chance to write down what their expectations are.
However, upon receiving the pay up front, you can not go out and spend the money until the project is complete.
If something were to happen and you were unable to complete the assignment, you will need to pay the money back immediately to your client.
If your clients and customers balk at the thought of paying up front for your services, you can also require them to pay just half the money up front or a down payment.
This will help to ensure that they will pay for the rest when the project is completed.
Many home based businesses require this to be done and it doesn't hurt the amount of business coming in at all.
To prevent your customers from getting away without paying for your services or products, keep a good line of communication open with them.
Always keep them updated on where you are with the project and let them know you are available for any questions or concerns that they may have.
Constant communication and a good relationship with them is going to keep them more willing to pay.
Unfortunately, there are times that home based businesses will experience the non-paying customer.
When this happens, it is important that you continuously try to contact them.
Let them know that you are willing to work out a payment plan with them and most important, stay professional on the phone and in your email.
Again, document all communication and attempts to collect, as this is crucial should you end up in court.