When the income from the business becomes inconsistent, that is where the challenges start. It is quite unpredictable to tell how much a new business is likely to generate. As a result, you will face several challenges when planning for the business‘ future. Therefore, creating more consistent streams of revenue within your business will ensure that you feel more secure financially. You will also have less worries of your enterprise plunging into losses and eventual closure. The following are some guidelines on how to get more consistent income.
You need to create plan on how you are going to make payments in your business. You should offer services in form of a payment plan to your clients. In this way, you can get a constant flow of income that is spread over several months or weeks. You can request your customer not to pay you full amount for this service, and allow them to pay you in installments for a period you can both agree. This will give your client more time to gather the money to pay you over time, and you will be able to know when you can have your money and the amount you will be receiving. This company will benefit from this scenario, and the client will equally be satisfied with that option.
Another way is by using a retainer. 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 receive the rest of the money after accomplishing the task. This means that, you will no longer get paid per service, but instead you will be paid per-week or per-month. In the beginning or end of every month or week, you can be assured of getting a certain amount of income.
If you are serving a client who is paying you commissions, you need to ensure that they can give you advance commissions. 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. Instead, you need to find a client who will give you an advance on the commission as you await the rest of the amount to reflect in your bank account. 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.