It’s rare that someone in my feed isn’t making a comment about getting paid. When you take a leap of faith and go independent you’re quickly exposed to managing your own cashflow, yet you have little or no experience. So, I thought I’d tell you a little story about Rita Harris.
When we (Phil Cook and I) started our own design agency in 2009 we had little or no idea on how to run a business, let alone how to find and get work. We picked up a job via @LinkedIn and just decided to give the whole thing 3 months, which turned into 6, and it went from there
We learnt the hard way and started with no projects/clients from existing agencies. Our naive plan was to start from scratch with a blank canvas. We pushed ourselves socially and little bits of work started to come in. Fun, but hard work with many late nights trying to break out
When we hit a wall or didn’t know how to solve a client request or problem, we’d take a frisbee to the car park and play until we’d figured out a solution. Bit by bit we started to build little relationships with people that would eventually nurture for years.
The problem we found was talking about money to clients we liked and got on with. Everything can go swimmingly, until you mention how much something might cost, or when 30 days are up and you’ve still not been paid. So we went to the car park again, to try and find a solution.
We realised we needed a mediator. Someone who could play hard ball, talk money, and who specifically wasn’t involved with the fun stuff we were delivering. So, we hired Rita Harris - an accountant who could do the things we couldn’t.
Rita could intervene when Phil or I were focused on creativity. She could be the person to mention to new clients we wanted 50% payment up front before we began. She could send statements of account and chase money when it hadn’t been paid.
Essentially, she could play hard ball when necessary, and it wouldn’t affect mine or Phil’s relationship with the client.
Rita did a great job. Invoices started to get paid on time, and on the odd occasion there was a delay, she got ‘legal’ and mentioned big legal words.
Rita did a great job. Invoices started to get paid on time, and on the odd occasion there was a delay, she got ‘legal’ and mentioned big legal words.
The thing is, and to this day I doubt anyone knew, Rita Harris never existed. We never hired her. She wasn’t real. She was a dummy email account both Phil and I sent emails from. We created a fake email account in order to look more professional, but mostly in order to get paid.
And do you know what? It worked! No one had a fucking clue and we got our deserves for our hard work. Sometimes an invoice gets missed, or sometimes a client is focused elsewhere - we got and get that - but that shouldn’t be our problem, so step up Rita to get bitchy when needed.
The thing I loved most about Rita, beyond the fact she solved our cashflow problems, was that she had a personality too. She got chatty with clients’ accountants and even once moaned about her boyfriend to someone on the other end of the email. Hilarious!
Rita had a name and that made her human. She wasn’t ‘info@‘ or ‘sales@‘, so she wasn’t completely cold or faceless. And that’s why she worked. She was believable.
Now, I’m not suggesting everyone goes out and creates a fake account (you can if it works for you), but I more wanted to show that there are other ways to talk about money that don’t ruin people relationships, that could also help you get paid.
Some tips on getting paid:
1. Ask for 50% upfront with new clients. Explain its about commitment from both sides. It’s okay to have principles. People respect that. If they don’t, maybe they’re not the client for you.
2. Obvious, but create a really simple invoice design.
1. Ask for 50% upfront with new clients. Explain its about commitment from both sides. It’s okay to have principles. People respect that. If they don’t, maybe they’re not the client for you.
2. Obvious, but create a really simple invoice design.
3. Ask for a PO number when you start a job and add it to the quote / invoice. Make things easy to track. If they’re a small client, scale this down accordingly. Either way you look professional and get taken seriously.
4. Be nice. Be human. Be fair.
4. Be nice. Be human. Be fair.
5. If you’re chasing a really late payment always try and speak to someone. Human to human communication is how we solve problems, so pick up the phone and be honest and open without tone.
6. If you want some tips on how to talk to people, or how to give people what they want, whilst simultaneously getting what you want, read this. Use it as a reference bible for communication How to Win Friends and Influence People amazon.co.uk/dp/0091906814/…
7. You could create a version of Rita Harris. Or maybe you actually employ a real accountant / person. Either way, you need to stay on track on when money is due and how much you’re owed. Cashflow is king when you’re small. Get a spreadsheet and keep a running balance.
8. If you’re VAT registered always plan ahead. There’s always a VAT quarter nearby, and your Corp Tax will come out of nowhere. These can be huge hits to your cashflow, so plan ahead and get that calendar / spreadsheet up and running, and set reminders.
I’ll leave it there for the moment as I’ve been banging on for ages, but if you have any life questions just hola
Tom, Phil & Rita ✌🏻
Tom, Phil & Rita ✌🏻
