Starting a business is not the easiest thing to do. There is tons of paperwork, early mornings, late nights, decisions to make, and money to spend. Although taking the big LEAP 🏃🏽♀️ of starting a small business can be frightening, it’s rewarding in the end–especially when you begin to see a return on your investment. 💰 Now that you’ve figured out how to start a business, let’s make sure you’re starting a business that actually makes money.
Tips for Starting A Business That Actually Makes Money
Research Clients Ahead of the Time
As a small business owner myself, I understand the excitement and eagerness that comes with receiving orders from new and previous clients. You want your small business to succeed, but have to be careful–every client may not be as trustworthy as you would like, and if an order seems to good to be true, that may sometimes be because it is
Depending on your type of business and the product you offer, it may be best to do some research on new customers; especially those that seek to place large orders. If they are non-responsive or have made late payments in the past to other local businesses they are likely to do the same with you. Don’t always jump and say “yes” to every inquiry or request. Do your research to ensure it will beneficial for you and your business.
Tip: It’s important to build a network of fellow business owners in your community to have these types of discussions.
Increase Your Pricing
Do you struggle with this too?! You know you have a good product, but don’t want to overcharge because you are still new to starting a small business, and you don’t want to rock the boat or push potential customers away. Totally understandable! But at the end of the day, you had the idea of starting a business to make money. Studies show that keep prices relatively high make your service or product appear to have higher quality than others.
Of course, your product and service have to be able to back up the extra few dollars you charge, but it will hopefully eliminate deadbeat customers that look for the cheapest way out, constantly request discounts, and suddenly go M.I.A.
Send Invoices ASAP
The secret to receiving prompt payment for your services is simply sending the client an invoice ASAP! The longer you wait to provide this documentation, the longer it will take them to send you the money that has been requested.
Prioritize your time wisely and respond to inquiries in a timely manner. When sending an invoice, be sure to list the due date clearly and set due dates that are seven days out and no later than 14 days. This will ensure a quick financial turnover.
Provide Convenient Payment Methods
Traditional payment methods are quickly becoming a thing of the past. In order to make sure your business gets paid [fast and easy] you must have convenient payment methods in place. Let’s face it, if you are not accepting online or digital payments (debit/credit card) you are missing out on tons of business! Many people nowadays don’t carry cash and hardly ever have a check on hand. Starting a business also means starting to do business in a way that’s convenient for customers, even if it’s not your preferred method. Set up an account with a variety of online payment processing companies such as PayPal, CashApp, and Square which will allow you to conveniently request and receive money from customers.
Reward Customers for Advanced Payments
Customers like incentives and always interested in saving an extra dollar or two if possible. As a business owner, you have the right to adjust your prices as you see fit. Consider offering customers a discount for submitting payment within 2-3 days of receiving an invoice. If you took our advice and increased your pricing, you won’t be hurt by a 10% discount since it will most likely equate to the standard rate of the product/service.
The same way you reward customers for paying early, you can penalize customers for paying late. Charge a late fee for payments that are past-due but make sure clients are well informed of this policy beforehand.
Always Be Professional
Professionalism goes a LONG way! By remaining professional at all times, your clients will be encouraged to do the same. How you conduct yourself via phone call, email, and other communications speak volumes about your business. Here are five things you should do to make a professional presentation:
- Be on time (it never hurts to show up early)
- Speak professionally (eliminate slang)
- Have a professional email address and signature
- Always proofread emails/written correspondence
- Create a contract/written agreement
In order to make a lasting impact on new clientele, you must exude confidence in your presentation. Remember, your product will be perceived the way that you present it. You know your product is good, so make sure it (and your business as a whole) gets the treatment it deserves. Set a specific due date(s) for payment and stand by it. It never hurts to send a friendly due date reminder or have a standard email drafted for customers who fail to make payments on time.
Get Your Coins
As millennials say, 🗣 “GET YOUR COINS!” (Figuratively, not literally–we want your business to profit more than just coins 😂). In layman’s terms, use the tips that we’ve covered today and make sure you get the money you have earned. Be sure to keep copies of receipts, invoices, and business-related expenses to reference for your annual tax-filing requirements.
TaxBandits understands how difficult filing taxes can be, which is why we provide small business owners with a simplified e-filing solution that saves you time and money. Create a free account and keep your business on the right track.