You’ve spent a great deal of time learning a skill and now the moment has come to share it with the world by means of your very own consulting business. As an integral part of the plan you are developing, you need to have a rock-solid payment structure that ensures you will be compensated for your expertise. That means understanding some of the important components of the most effective systems.
1. Set up your account’s infrastructure.
You can’t get paid until you have a distinct place where the money goes that is separate from any of your personal bank arrangements. In order to acquire this, your best bet is to talk to a merchant services provider. These payment technology companies are in the business of giving you everything you need to get paid: a business banking account known as a merchant account, plus, payment hardware and software.
A word of warning: Don’t assume that all of these merchant services companies are all the same. Look for an established partner who has been around awhile. Furthermore, you want to establish a relationship with a provider who has experience in your industry and who can demonstrate that they are available to assist you should there ever be any bumps in the road. Also remember, while some of the fees you pay are non-negotiable, many others allow for some wiggle room so make sure you’re not being overcharged.
2. Technology can be your friend.
We alluded to hardware and software in our description of what your merchant services provider will provide. You will soon learn just how important this conglomeration of programs and devices will become for you. Known as a point of sale (POS) system, this suite of components will enable you to do the following.
- Accept customer payments quickly and securely.
- Offer acceptance for various payment types, including recurring billing and multiple currencies.
- Keep track of customer data, including their history of buying your services, outstanding invoices, and contact details.
- Track inventory for any products you sell.
- Create actionable and easy-to-understand reports that you can use to measure past performance and customer purchasing patterns, enabling you to make more accurate, data-driven forecasts.
- Integrate seamlessly with other third-party software that you may have such as accounting programs.
Once you become comfortable taking advantage of all the features packed into your POS system, you’re likely to discover that it has taken over many of the tasks that once stressed you out and took up far too much of your time.
3. Accepting payments doesn’t have to be a nightmare.
You now have a payment services provider you trust and some rock star-level hardware at your side every day. All that’s left is to come up with the best way of getting people to pay you — fully and on time — for your efforts and expertise.
There is one secret that every consultant should never forget when it comes to payments: You should receive all or at least some of what you are owed before you do any of the work. This protects you from devoting your precious time and attention to a project, only to be told that the customer is no longer interested in giving you their business.
If you are just starting out with your consulting business, you can simply set a policy that you will not start work unless you have received all or a portion of the total cost owed. Most customers will understand if you explain your reasoning behind this stance.
On the other hand, if you have an ongoing customer who is used to prolonging their payments long after your work is done, your best bet is to be as transparent as possible. Acknowledge that you formerly were lenient in this area, but be clear that your billing system has changed and, from this point forward, they will need to modify their invoice procedures to adapt to it.
Success for a consultant occurs when you are good at what you do and know how to market your business to the customers who need it. With the solid foundation of a good merchant account provider, a modern POS system, and effective policies, you’ll have all the elements in place for a long and lucrative consulting future.
