One of the podcasts I’ve picked up recently has been Unfinished Business, which is all about running a web consultancy (or freelance business).
Episode 3 talked about getting paid.
- always take a deposit
- if you sub-contract work, make sure you have the $$ on hand to pay them
- always have a contract
The second item is a pet peeve of mine. If I hire you as a sub-contractor you can be sure I have already set aside the $$ we agreed on plus 20% (just in case) to pay you. I’m your client and I’m responsible to pay you.
If I’m sub-contracting from you I never want to hear that you paying me has anything to do with the client paying you (outside of the deposit at least). I don’t care if you have been paid. I did the work, and you’re my client. Pay me.
It’s entirely irresponsible to hire someone, and not have the money set aside to pay them. If you just can’t save the cash for that, then step back and see if you have a viable business. If you do, live lean and save the money you need.