Being a freelancer is not for everyone. There are simply too many uncertainties, and some of them are related to payment. You can only do so much to ensure that you are getting paid on time, but eventually you will need to become more professional and treat your business as if it had a real physical presence.
You started your venture to make money, and nobody likes waiting for their payment for months. Below you will find a few tips on how to get started with securing the financial future and cash flow of your business.
Clear Terms and Conditions and Payment Terms
No matter if you are using a digital account or a payment processing platform, you will need to ensure that you are able to take payments before you complete and deliver the work. You will have to disclose your payment terms on your contract and invoices, and find a way to withhold work if the client refuses to pay.
For example, if you are a freelance writer, you can send a sample only, or a screenshot, so your client cannot use your work without paying.
Digital Contract Signing
Having a written work contract is just as important for freelancers as it is for brick-and-mortar companies. There are several ways you can get your clients to sign the contract and enter an agreement with your without meeting in person. Find a way to make your contracts legally binding, and as clear as possible.
Of course, you will also have to act with due diligence when it comes to choosing who you work with. There will be people who want to take advantage of your inexperience, so do your research. Find out as much as you can about your potential clients, and check their ratings. If you are confident that you are dealing with a real business, you can still ask for a deposit for the first project, at least.
If you choose to work through freelance agencies, you will have to review the terms and conditions before you hit the signup button. You should always check how much commission you are going to pay, and how long it will take to get paid. You don’t want to be paying to bid on jobs and not get a response from the company that requested it.
Legal Protection and Professional Services
No matter how careful you are, you are still likely to come across clients who don’t pay. You have to find a way to get the client to realize that you are more professional than they thought. It might be a good idea to take your time to find the right lawyer who offers advice, collection letters, and representation at court, in case you are unable to collect the debt in any other way.
Extra: Importance Of Your Terms & Conditions
Every single business is told the rules that all must abide by. The government is the end all be all when it comes to how businesses operate within its jurisdiction. There are safety laws that countries have developed, some together and some setting their own uniquely.
There are all kinds of problems that are tackled by these essentially terms and conditions of operating. But what about your own rules? The reason why you need to develop your own set of terms and conditions is because when you’re interacting with other businesses, they need to know exactly where you stand. Inadvertently, this also means they are informed where they stand, with regards to your business.
When you enter into business partnerships and when you’re dealing with clients as well as investors, they need to know what they’re agreeing to and also what is not going to be agreed upon. Your terms and conditions is a way to set out your own sovereignty in the business world, which is essentially protection from harm as well as ultimate freedom to not be ruled by others.
Protecting Your Business the right way
Setting up a small business or pursuing a high-end career can take a whole lot of hard work and effort. You really do have to wholeheartedly commit your time, money, effort, and energy to moving up in the world! So, it’s not all too surprising that once you succeed in your aims, you want to protect your position as you best can.
Nowadays, reputation counts for everything. A tarred reputation can see your business boycotted or people petitioning for you to be removed from your position – you could lose your job and simultaneously lose your income and the lifestyle that it provides.
You could also lose authority, respect, and good regard. So, what can you do to protect your professional reputation? Here are a few steps that can help you to achieve this!
Getting paid as a freelancer is always risky. You will have to do your research and put measures in place, so you can focus more on the work and less on chasing after payments.
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