As a small business owner, you’re probably going to be a little more flexible about payments than a big business would be. Sometimes it’s necessary to give parents extra time to get their ducks in a row, and that’s understandable. However, it can hurt your studio if you have too many past-due accounts and let them hang in limbo. Here’s a few tips for dance studios on how to handle parents who are behind on payments without losing their business.
Have Policies in Writing
One of the best tips for dance studios to prevent past-due payments from becoming a problem is to clearly detail your policies. Dance Studio Profit recommended having your studio policies printed on invoices and available on your website. This way parents won’t have the excuse that they didn’t know your rules. It’s also good to keep your policies relatively straightforward. Detail what will happen after 30 days, 60 days and so on. Set penalties for standard time periods so people aren’t caught off guard.
Be Open to Compromise
Chances are that you’ve built strong relationships with many of the parents at you studio, and that can make bill collections difficult and even awkward at times. However, at the end of the day, you are running a business, and collecting payments is a necessary part of the job. If you notice that a parent is struggling with payments, take time to sit down and discuss the problem. When you talk about the problem in private, you may be able to come to a compromise, like some sort of payment plan. This way you’ll avoid awkward confrontations down the line and keep your customers happy.
Give Fair Warnings
While you’ll want to establish a final cut-off date for past-due accounts, don’t let it sneak up on parents. There might very well be individuals who intend to pay, but keep forgetting. It’s best to give gentle reminders, either in person or in writing, that a payment deadline is coming up. Let parents know ahead of time if they’re going to accrue extra fines or if their child won’t be allowed to participate in class. It’s a small action that can go a long way toward getting past-due parents to settle their balances and keep your customers happy with your business.