There are so many times in entrepreneurship when individuals and big corporations owe us money but don’t pay up on time. We send invoices and reminders but they still don’t pay up. On your end, you have bills to pay, employees to pay and other expenses. When people decide that its OK to not pay you, somewhere we ourselves should take responsibility.
When they think it is OK to not pay us on time, just when it is due, consider the following cases and see if your scenario falls in any one of those.
- Have you given them the reason to believe that it would be OK to not pay you on time?
- Do you use the language, “its ok, you can pay me later.”?
- Do you think, Money is not an issue, lets take care of the project first?
- Are you a people pleaser and you do not want people to think that I was money minded when internally you are struggling for money.
- Do you feel ashamed asking for money or even discussing the money part in detail?
- Do you send invoices on time?
- Do you EMAIL the invoice reminders and after 1-2 reminders, not escalate the situation even when the invoices are not paid.
- Do you let it go even when the invoice payments are delayed.
- Do you list down in detail the terms of payment and penalties for delayed payments in your proposals or agreements or MoUs?
- When we start a new business, we just want more clients and more projects and money is the last thing on our mind. So we conveniently miss adding the payment terms in detail.
- We don’t want to hurt the client or we don’t want to “displease” the client and thats why we don’t mention the payment terms in detail.
- We don’t want to LOOK fussy and thats why we omit the detailed payment terms.
- We just want to get the project and we don’t want to think about the money part.
- We don’t know the importance of money in business.
- Are you ASHAMED of asking for your money ?
- No matter how much the payment is delayed, you only remind once or twice, no matter how much money crunch you are going through
- You internally BELIEVE that you don’t deserve the money for the KNOWLEDGE you have stored in your brain.
- When you call for payments, you feel uncomfortable talking about money, and you talk about project instead.
- You continue to work with people who don’t pay you on time on more than one occasion.
- You fear losing a client or a project and breaking a relationship even when his client or project is making you pay from your own pocket.
Its time to change now!You cannot be treated like a door mat.
Take the following 10 steps to improve your money game.
- Start VALUING what you have in your brain, the knowledge that you have gathered with years of experience.
- Start listing down what benefits you help your clients accomplish in their business and how does your project help their business grow or makes their life better.
- Know that when YOU DELAY ASKING FOR MONEY, you are LOSING slowly and steadily, your own self-respect in your eyes.
- Know that when you don’t ask for your money, you give permission to others to think that you don’t DESERVE the money.
- Be ready to LET GO of people who don’t think you should be paid on time.
- Know that you will END your business sooner or later if you don’t ask for money and you might have to take another job.
- Know that if you don’t ask for money, you will NOT be able to help OTHERS who really need your help because you will not be able to sustain your business.
- Know that 1/3 of your invoices pay for helping your market your business to the next level. Isn’t that why you left your high paying job, to scale a good business?
- Know that money and cashflow are the blood of your self esteem and your business’s self esteem and that’s why you need to set the rules.
- Know that you have jumped from being a COMFORTABLE employee to an UNCOMFORTABLE entrepreneur, mostly to make an impact and money will ALLOW you to do that.