Battling the Financial Storm19 March 2009 Following the slide of the FTSE below the psychological 4000 barrier and the much publicised crisis at LDV with 6000 workers jobs under threat, those of us who expected the economy to start righting itself this spring may be sadly mistaken. As employers cash gets tight we thought we’d focus on what you can do if you’re freelancing and having trouble extracting that well earned payment for your hard earned work. |
These 5 tips won’t guarantee success, if an employer goes bust,
there’s very little you can do, but they may at least remove any
anguished thoughts of what you could have done differently…. Good luck!
1) Make
sure your contract is in order and if necessary, get a legal once over
to make sure it’s as robust as possible. Make sure it states the terms
of payment on it, and remember to get the employer to sign a copy so
you’ve both got something contractually binding agreed in writing.
Offer an early payment discount at the outset. You’ll be amazed with
how much of an incentive this is to employers. If at all possible,
reduce the risk by getting paid on a weekly basis. Can you split your
work into smaller billable elements rather than a final lump payment
for the finished article?
2) Network, network, network. If you’re being given the run around, try
and find a trusted ally within the business who can keep you in the
loop of what’s happening. Find existing suppliers if necessary to
understand how they are being paid. Ask the Network Freelance community
if anyone’s been in the same situation, and get free advice. And
remember to spread the word. Network Freelance is the only freelance
community where you can leave feedback on employers. If you’ve
contracted with one and you’d rather not repeat the experience, tell
the community. Keep the facts though!
3) Get your mode and method of communication right from the start. In
short, ditch the blackberry and go old school. Was it Charles Dunstone
from CarphoneWarehouse who banned internal emails (let me know if it
wasn’t as its bugging me!)? Emails are impersonal and easy to delete
(see below). If you call frequently you’ll soon be on their mind.
Remember to keep a log of all your correspondence. With emails it’s
easy enough – just don’t delete them otherwise it’ll be your word
against theirs. Try to remain courteous but firm. You do get more with
sugar than with salt and it doesn’t mean you have to be a pushover.
4) Don’t factor on time payment into your cash flow. Spending before
you’ve got it is a sure fire way to get you into trouble. Easier said
than done I know but hold the retail rewards until you’ve got it firmly
in your bank. And always, always, always keep between 10 % and 30% of
your earnings aside for a dry spell (and to pay your tax, get through
periods of illness etc!)
5) Get legal. The internet is awash with debt chasing online solicitors,
many of whom can send out ‘stock’ debt chasing letters for you, before
it all gets too serious for a nominal charge. Often this is all it
takes to shake employers into action. Within 2 minutes on Google,
Thomas Higgins & Nelsons Online both came up offering similar
services. If you’ve used any agencies like this before and can
recommend them, why not set up a thread on the forum and share the
knowledge.
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| Author: James Birtwhistle |