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The other day I was speaking with one of my P.R. buddies.  She told me something that made my blood run cold.

Her biggest client had passed away from a heart attack, unexpectedly.  Not only was she grieving, but financially she had to scramble to figure out how to replace that income.  But the part that really bothered me?  He was two months behind on payments, and now she would have to sue his estate to try and get the money.

I have always been a stickler for getting paid.  But this story reminds me, along with everything happening in today’s economy, you can never take getting paid for granted.  And that means putting processes in place so that that doesn’t happen.

Typically, small businesses are the last to get paid when things get tough.  Why is that?  It’s simple.  Most people don’t want to risk problems with their credit scores or legal issues that come from not paying big companies.

Here are some ways to make sure you get paid, even in a tough economy:

1. Accept credit cards, no matter what kind of business you’re in.  If you’re a restaurant or retailer, you’re probably familiar with this.  But if you’re an attorney, ad agency or P.R. provider, you may not have considered this. Implementing this one change to my business six years ago dramatically changed my cash flow for the better. And if you’re scoffing because your fees are high, take heart knowing that I have put through fees in the amount of $6,000 and up without a problem.  I do recommend taking American Express, as many folks like to get points.  If you don’t want to get a merchant account, consider PayPal.  For a long time I dismissed PayPal, but  when I found out how easy and inexpensive it was to set up one of my clients on it, I’ve since changed my mind.  You can find out more about PayPal here.

2. Ask for payment up front.  Your client may say to you (as some of mine have) that they have never paid a vendor late in 20 years.  Guess what?  You don’t want to be the first vendor that experiences that late payment!  I like clients to pay by credit card (on file), up front.  But if a client balks, ask for a check (and make sure it clears before starting your work) up front.  Or get a retainer against future work.

3. Get signed agreements.  Sounds obvious, but unfortunately many people skip this step.  Written agreements may not be iron-clad, but they sure are better than verbal ones, especially if you need to take legal action.  In your agreement, include when and how you are to be paid, the exact products and services you are to provide, and the consequences if you don’t get paid.

4. Make sure your product or service is in demand.  When clients want what you’re offering, they are more likely to abide by your payment requests. 

By taking these steps, you’ll make sure that your small business isn’t the last to get paid. And that will help you stay in business.