One of the most important parts of starting a business besides the products and services is setting up how you'll get paid. You're in business to exchange your product or service for a fee.
Below are 5 steps to help you start collecting money.
1. Set up a business bank account with a debit card. Research local banks in your area to see what the requirements are to open an account. Take into consideration the monthly fees for being below the minimum balance. Make sure your business account is only for business purchases. No personal items should be paid out of this bank account. So while those shoes are gorgeous they shouldn’t be paid for out of your BUSINESS account.
2. Decide what form of payment you’ll be collecting from your customers. Will you be accepting cash, check, credit card, or a 3rd party payment processor? A 3rd party payment processors such as PayPal, Stripe, or Square require you to set up an account with them. Payment Processors collect funds on your behalf in an account held by them, then they issue you funds at certain points and in certain ways.
a. Make note of the processing fees (PayPal and Stripe currently charge 2.9% + .30 per transaction)
b. When the Payment Processor issue payment to you (every two days, weekly, monthly, etc.). No you don’t get it instantly, I know that sucks, but you’ll be fine as your notifications will be going off daily in no time.
c. The form of payment you can receive your funds from them in (check, merchant card, a transfer from them to your bank account).
3. Shopping cart setup. This is where the customer actually goes to select the product or service.
4. Clearly state your payment terms and conditions. Make sure they have clearly stated to your customers EVERYWHERE. On your website, on your receipts, where they can see it when purchasing, etc. You want to avoid as many customer service issues by stating your terms.
a. How will you handle returns and refunds?
b. How will you handle cancellations or reschedules?
5. Get your products or services together, set your prices, and SALE! SALE! PROMOTE! SALE!!