When a client owes you money and won’t pay, not only is it an upsetting experience, it can bring bad energy to the business. But, if it’s a big account, it also has the potential to affect your ability to pay your own bills and team.
Sure sometimes late or missed payments are simply a clerical or administrative issue. But sometimes, it’s more than that. Even if the client intends to catch up, it can still be stressful for you while you wait.
In today’s episode I teach you 4 things:
- How to protect yourself in advance so that you minimize the chance of it ever happening
- How to protect your own ability to pay your team and vendors in the event it DOES happen
- How to handle it when it happens
- What to do if the client completely flakes out and becomes a bad debt
One of the things I teach you in step #2 is to make sure to collect a big enough deposit up front so that ALL of your hard costs are covered. This way, in the unfortunate event if a client is late, while lost profit always sucks, at least you aren’t out of pocket or using cash of your own for the services you provided. I’ve got an awesome worksheet to help you calculate your costs so you know what your deposit should be.
Download it here:
Make sure to leave me a comment below to let me know how today’s video helped you.