My fundamental business philosophy: always deliver quality work and ensure payment is received before considering a sale complete.
Early Lessons
I learned this through painful experience. When starting my print and design business, I encountered over-trading issues when suppliers demanded payment before clients paid me.
That’s the only time I’ve been in debt. I won’t repeat it.
Overcoming Payment Anxiety
Many entrepreneurs struggle requesting payment because they fear losing clients.
Here’s the truth: if they weren’t going to pay you, they were never a customer.
This straightforward approach helps separate genuine clients from poor-paying relationships.
Question Outdated Practices
30, 60, or 90-day payment terms are wholly outdated for modern business. They benefit the client at your expense.
I now require full upfront payment. This lets me focus resources on paying clients rather than chasing debts.
Debt Collection Strategy
For overdue payments, follow a structured escalation:
- Day 1: Confirm invoice receipt
- Week 1: Verify approval for payment
- Before due date: Follow up proactively
- Payment late: Contact accounts immediately
- Still late: Stop work and escalate via email
- Continued non-payment: Issue formal warning with 48-hour deadline
- Final step: Pursue small claims through solicitors
The Bottom Line
Implement upfront payment policies to eliminate collection challenges entirely.
Cash flow problems kill businesses. Don’t create them by being too polite to ask for what you’re owed.