Published April 04, 2018
© baranq /Adobe Stock
Now’s the moment you’ve been preparing for. You’ve successfully solidified your business model, you have a swanky logo, and you have your first client! (Congrats!). But now what?
Now you have to think about the money.
When running your own business, your income can depend solely on the payments you receive from your clients. This reality is often difficult for business owners to acknowledge, but once you accept it, being paid should be on the top of your priority list.
It’s normal for new business owners to feel unsure of the process of invoicing or requesting the monetary value of their services.
If you still feel uneasy about invoicing, check out our 3 tips that can help.
1. Know Your Worth
It’s completely ok to not be confident when starting your own business. If you wait until your business is perfectly planned, then you will never begin. Businesses are not perfect when they start, they grow as you do, you learn what works and what doesn't for your business and so you adapt or you adjust certain things. You basically learn as you go, the same can be said about invoicing. However, when starting out, know your worth but also be reasonable. Always make sure you are making a profit, otherwise, you won’t be able to cover other business expenses or be able to pay your bills. Know the time your services take out of your day and always keep in mind the expenses used for you to provide your services. Getting more than you put out is the name of the game otherwise you can kiss your business goodbye.
2. Establish Your Payment and Terms
If this is your first time discussing payments and terms, don't feel shy about what you demand. Remember that this is the only way you and your business will receive the respect you deserve. Go over everything; forms of payments, expected dates of payment, etc. If you would like a payment of deposit upfront (depending on the work involved) don't be afraid to say so. It’s all up to you, that’s the beauty of being your own boss but also keep in mind that you may have to be flexible with some clients that may want to negotiate different payment terms.
3. Create an Invoice
When creating an invoice, there is no exact format - but certain items are expected. If you’re new to the invoice world and a bit anxious about creating one, worry not. There are sites that do half the work for you, just like our very own Invoice Home! (we might be a bit biased ;D ) Creating an invoice might be the last thing you want to deal with which is why we make invoicing an easy and fast process. Create and send your invoice with just a few clicks! After creating an account with us, all of your invoices are saved for future reference. You’ll need them for tax season. Your account will also send your client a payment reminder as the date approaches. Our system also allows your clients to pay you by credit card or PayPal.
We hope that this helps make invoicing less of a daunting process, now go make your business a success!