Question, if your late on your credit card payment what happens?
A. You have a late fee
Your a small business, your first step is determining what your fees are, then what is the minimum you can accept to profit. Never accept a loss,
Example:
What does it cost to print a 300 pg package? lets say .10 per page 300 pg = $30.00
What does it cost you to drive your car? the cost of your insurance, gas, maintenance lets say .55 per mile for 30 miles one way = 16.50
What is your hourly rate? prepping docs for signing, setting with the client and explaining documents and answering questions, prepping docs for shipping, fax back ect....? lets say you block 2 hours at 50 per hour = $100.00,
total Signing 146.50 only covers the signing not additional business expenses listed below
thus far your business has not made a profit, you just covered expenses to do the signing
now lets add a few more Items that your business needs to operate:
Electric
Phone
E&O Insurance
Office / Home Office Space
Internet
Computer
Printer
Pens
and any other office supplies
advertisement
Associations such as NNA
Training
Licenses Auto/notary ect...
Taxes Local/State and Federal
Parking fees
investments
The list can continue with more business expenses depending on business needs.
When your client is late on a payment your late on 10 payments so a late fee is necessary, so make it a point to let them know that if payment has not been received with-in 30 days an additional monthly late charge will be added. This help when filing a lien on the company/ judgement its the same process as a credit card company or bank would do to you if you continued to ignore your debts.
The bottom line is we are a business and need to act as such, and not allow another business to manage your finances.
|
