When clients don't pay

[stirling]

Hi all

I run a very popular little educational business in my local area upon request from the local parents. It's grown over the years but I have one huge problem - clients that don't pay. And this is because the vast majority of them are my friends! (parents of the kids my own kids went to school with)

I'm gradually receiving a few "unknown" clients through recs, and finding it's a breeze working with them. They pay upfront and it's all very professional.

I'm wondering how best to aquire more of these unknown to me clients. I'm hopeless with social media but I do have a Facebook account which I use twice a year!

Am I allowed to promote myself on Facebook - if so, how? On the local residents group? How do I reach my target audience? Or should I use Instagram? Or something else?
Or would you recommend I pay someone to advertise for me on social media?
I don't even have a website!

Thank you for any advice.

Social media is a very good way to advertise yourself and you manage it yourself so won't cost you anything. I have a few friends that do this but set up business pages. Alternatively you could always do it though your personal page, but I image a business page would get more traffic. Also use things like Facebook marketplace and shock maybe to advertise what you do?

Sorry to hear about the non payers. That's so terribly rude of them

Ask them for payment 48 hours before the service you offer and if no payment then no way your providing the service.

Can't you request so many weeks in advance?

You sound like you would benefit from a social media manager. It can be a bit of an expense to have one work for you on a week by week basis but alternatively they could set everything up for you, give you a really solid starting point and then plan for you to take over and run it yourself.

I’ve found my social media manager invaluable. If you want a recommendation then feel free to PM me.

What kind of contract do you have with the local parents? Sounds as though you might need a late fee.

I don't know what you do exactly, but maybe tutoring? My friend who is a tutor asks parents to pay for 2 weeks the first week, then the get the last week free. She also has a no cancellation policy unless 48hrs before but I know that she is flexible on this.

I work for a club that does sports lessons for kids & we used to have an absolute nightmare getting people to pay.
We’ve solved it by getting an online booking system that takes payment.
Our booking now is all online only & they must pay when they book in.

Facebook is the best way to advertise yourself, join groups for the local area, post regularly but not too often and try not to keep posting the same thing all the time.

Can you get a link with local schools? Some will let you give out leaflets, others will let you put an advert on their news letter

Thank you all for the very helpful replies. I didn't know about things like an online paying system, a social media manager etc...
I'd like to be firm wtfisgoingonhere21 and do that but I'm just too dippy and " nice" /embarrassed to be business like especially since they're friends..
But you've all given me some ideas to try and I'll look up online payment systems first..
Yes it's tutoring but specifically one area.
Thanks again

Our online booking is a specialist system designed for groups at sports clubs so probably not right for you, I’ve had a quick google & seen this www.kidsclubhq.com/after-school-club-software/?utm_source=google&utm_medium=cpc&utm_campaign=UK%20After%20School%20Club%20Software&gclid=EAIaIQobChMIyq-AhJzo8AIVj77tCh38wg4jEAAYAyAAEgI51vD_BwE
It’s one of the first that came up & might not be quite right but it will give you an idea & there is a free trial.

It takes a bit of effort to get people to change the way they book but it really is worth it. We made the change when we got to the October half term one year & still had almost £10k outstanding for the term, we realised we couldn’t carry on running the business with that level of risk.
It does cost money but it’s made up for by the fact that we now don’t lose money to non payers.

If you do go down the online booking route make sure your customers know exactly how to use it, send an email with very precise step by step instructions - otherwise you’ll get phone calls saying I can’t do it, can you book for me & I’ll drop the money in!

Nancy thank you for this I'll check your link. I'm also thinking of PayPal or amazon pay? Not sure if it's feasible though.
I just find it so annoying that it's the same parents everytime.

You could use PayPal, but I think you’d still be chasing payments. Our policy now is if you haven’t booked through the booking site then you are not booked & someone else could book and take the space.
Do you have groups of children or is it classes one at a time?

And yes, always the same people!
I’d find it particularly annoying when I’d be chasing them for £100 & they’d drop their child off driving a brand new Mercedes but avoid paying for the lessons.

I really think you need to be more firm. You aren't doing this for free. I think it's appalling that parents are sending their kids to be tutored and not paying.

Could you not invoice them and have something on there that states must be paid within a specified time or Your services will cease? Or due to non payment you've had to rethink how you run your business, so your services much be paid for in full before they can go ahead. Any kind of out of school activities I've always had to pay for in advance before my child can begin/continue. It's not uncommon.

Nancy and Spideymom this is very true! They turn up in flashy cars yet drag out the non payment for six weeks.

Actually you have prompted me to email them all with a firm clear message about non payment. Last time I did this, they all paid upfront and then went back to the usual rubbish the following half term.

I think online payment system, plus not admitting them into the lesson if they haven't paid (on zoom) might work. I just have to get over the guilt complex - it's the child I'd feel particularly bad for. My students really love my sessions.

OK, time to just take action.

Well done for for the firm email!
As you’re via zoom it’s a bit easier to turn them away, ours drop off & drive off - we can’t really turn away a 5 year old who’s mum has just left them with us.
It does make me really annoyed, I used to feel horrible ringing up asking for the money even though it was them in the wrong for not paying.
I had one family where the man actually said ‘I don’t know why you have to keep chasing me like this, you know I’m good for the money!’ He lived in a £2 million house, dropped kids off in a Bentley and was always at least 10 weeks late with payment. Some people just have an absolute cheek!

Well done.

They have some nerve though don't they. Clearly in a position to afford it but feel rules dont apply to them.

I have a friend who runs a different business to yours but made a really angry post on Facebook about non payers. Which made her introduce her online booking system and very strict conditions. And if the service wasn't paid for before going ahead then they would lose the slot and their booking fee.

You have to he firm. This is your business. You are offering a service. Don't let them take advantage

I agree with others, they need to pay. It's funny, I'm QUICKER to pay friends than random service providers because I hate the idea of a friend thinking, even for a minute, that I might be taking the piss.

A firmly worded email. If you want to avoid direct confrontation, say something like, "As I get busier, I need to streamline the admin so will require payment upfront ahead of the lesson before accepting to zoom" or whatever.

A good way to get new business is referrals. So in the same above message you could offer a 50% discount for one class (or whatever seems appropriate) when someone refers someone and a similar discount for the person being referred.

Depending on what you do, local businesses may allow you to advertise in their windows/leave cards or flyers etc. We have a local cafe that is a hub for much of this sort of activity.

Good luck.

It is difficult.. and yes those with the most money seem most reluctant to pay!

I have a number of income streams where I require payment and some are easier than others when it comes to taking payment and ending up giving my time freely.

I don't live in the UK and we have a payment app (not apple pay or amazon pay) that is FANTASTIC! Most people have it and I can request and receive payments easily and I send WhatsApp reminders. Bank transfers are more than 2 clicks so often take longer. Could you send paypal requests?

Thanks again everyone, really good to have some moral support and empathy on here.
That parent with the Bentley sounds horrendous!