Nothing is worse than a business that is generating inconsistent income. It is quite unpredictable to tell how much a new business is likely to generate. Planning on how to run and expand the business will become quite difficult for you. Creating more reliable financial sources in your business will guarantee you financial security throughout the business operations. You will also not worry about your business suffering from unprecedented losses, which may lead to its closure. The following are some guidelines on how to get more consistent income.
A payment plan needs to be created which you will use to receive all payments in your enterprise. The services you are selling to your customers need to take the form of a payment plan. In this way, you can get a constant flow of income that is spread over several months or weeks. Instead of receiving payment for your services as a lump sum, you can ask the client to spread the payment and pay little amounts for an agreed period. This will allow your customer to plan well on paying for this service, and you will in turn be able to predict how much and when are you receiving the money. This company will benefit from this scenario, and the client will equally be satisfied with that option.
You can as well ask for retainers before commencement of work. You can request for some commitment fees before you start the work, and you can work in the agreed times. For instance, if you are handling a given company’s site, you can request this company’s management to pay you some fees at the beginning of the month, and then the rest after you complete the contract. You will then work throughout the month and receive the other payments later. This means that, you will no longer get paid per service, but instead you will be paid per-week or per-month. You can be sure about getting some income at the end of the month or week.
Finally, you need to look for clients who offer commission advances. If you get hired by a client who will be paying you a commission on your services and you have to wait for payment, it will really impact your enterprise negatively since you will wait for a long time to have the money deposited in your bank. You should instead look for a company that will give you an advance commission and then the rest of the amount after the services. This will ensure that you will have some money to run the activities of your enterprise even as continue offering the services to your clients.