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Hey, Stian Weideman the FitBiz Rebel here. Today I wanted to talk you about accepting payments. In the beginning when I started with my business I was all about just pay whenever you can or just give me cash. Most people prefer cash but at the end of the day, I’ll be honest with you, accepting cash just leaves you up to being conned. I think that’s the easiest way of saying it. I know it sounds bad but that’s the truth.
You know, people what happens if you leave it up to them either doing an EFT which is an internet transfer on their own or actually giving you cash, you have to wait for them to come in or for them to take the action. I’ll be honest with you, I give people the benefit of the doubt and I know how busy life can get.
So what tends to be is them paying you is not the first thing on their mind. It might be the first thing and the number one thing on your mind because you’re running a business but for them it is not the same. So we tend to forget that they’re not going to just pay us because if this is not what they’re thinking about, they are just not going to do it.
So by having an automatic debit order, now obviously in your country it could be something different, whatever they call it. But it’s when it’s an automatic debit of your account what you need to do is you obviously have a supplier once again, it would be difficult for me to tell exactly who to use because it depends on which country you’re in. And so I’m sure you can just have a look at obviously your bank or which type of service you can use for that.
But automatic debit is the best way to actually move your business forward, I mean I’ll be honest with you I saw a double – I actually doubled my business in a couple of months’ time. Because suddenly I was receiving the money that people were actually supposed to pay me. Because you know you can have it on your excel sheet or whatever you use the amount of clients that you have but believe me, if those people don’t pay, that’s not the real money that you actually make.
So let’s say for instance, I’m going to use rand now because obviously I live in South-Africa. But say you make 20,000 rand a month, that’s your income supposedly because that’s the amount of clients that you have. But you’re actually only receiving 10,000 rand because half of the people come in late or they’re not paying at all or they’re just staying away because you know how people are – I mean I’ve had this in the past where people feel this way, if they don’t come to train, they don’t need to pay.
But it doesn’t work like that. That’s why if you will have an automatic debit system where the money automatically goes off to your account. I have two dates on mine, I have 1st of the month and 10th of the month just because with me it tends to be that the 1st of the month everyone that works for someone that earns a salary their debits go off the 1st of the month and people that are running their own business they’re actually waiting for money to come in. So the 10th works better for them. So yeah, that’s the two dates that I have, but automatic debit is definitely the way to go because you’re not leaving it up to chance, you are not putting it in their hands. You’re actually making it easier for them because you’re letting the money go off their account by itself. It’s not another thing that you need to worry about.
So yeah, if people are against that which we’ve had – well, I mean, we’ve faced some resistance on that as well. Just remember, it’s your business, you need to do. Do things the way you want to do it because otherwise if you’re going to leave it up to them, you’re going to struggle in business. It’s your rules. Remember, you don’t want an average business. So it’s your rules, do it in the way that you want and using automatic debit is definitely the way to go.
So yeah, try that, stop taking cash. If you want to take cash, you can do that but don’t make that the majority of your business. I would say if you take cash 10% of your business and the other 90 needs to be on automatic debits.
And another thing I’ve also learned is in some cases I would recommend you if you can get the money upfront, that’s even better because people would sign up for a contract of let’s say 12 months and they’re still trying to get out of it. Once again, it depends on what the laws are in your country or in your state. But in our country there’s still a way of getting out of a contract even if you did sign it and you feel like you don’t want to continue with that, there’s a way of getting out of it. Which for you as a business owner is bad because obviously you’re depending on that 12 month’s income from that person but you’re not actually going to get it.
So if you can get a way with that person maybe paying 6 months ahead of time for their program or whatever, that’s awesome because let’s say up to 3 months they’re getting tired of – let’s say they’re lazy and they don’t want to continue with you then at least you do have the money already. So and then another thing is this, even if people pay upfront, it’s a better thing for them as well because it will make them more committed because they have a lot of skin in the game. The money is there, the money has already been paid so they are the one that’s going to lose out, you are not the one that’s going to lose out. So they’re obviously going to want to train with you harder and more because they’ve already paid you the money. So yeah, try that today and I bet you, that will take your business to the next level.
Rebel With A Cause!