Using retainer fees for positive cash flow and sustainable growth

Using retainer fees

Retainer fees can secure stable income, foster client commitment, and drive continued growth for consultants, coaches, and other service providers. Discover how integrating retainer fees can benefit your business.

Do you charge retainer fees? In a retainer agreement, the client makes an upfront payment or payments in exchange for ongoing services such as consultation.

Many independent businesses — including consultants, designers, and coaches — can benefit from charging retainer fees. They can help stabilize cash flow, guarantee revenue, and build lasting relationships with loyal clients.

Clients can also benefit from retainers because they’re guaranteed a specific amount of time or access in exchange for the fee. This means that they can get the consultation, advice, or coaching they need because they’ve already paid for it.

Read on to learn more about the types of retainer fees, how to use them, and the best way to process and collect them.

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What is a retainer fee agreement?

retainer fee agreement, or retainer contract, is a legal agreement in which the client pays a set fee in exchange for your future or recurring services. Clients find details like the duration of the agreement and the fee amount in the contract.

Examples of small business retainer fees

The kinds of businesses that use retainer fees tend to be service businesses of any size, including small independent businesses with or without subcontractors.

Examples of small businesses using retainer fees include:

  • Marketing service business: Marketers, including independent marketing consultants, can be retained by clients, who will pay a fee for marketing ideas or projects that may be paid month by month.
  • Accountants: Accounting is one area that many business or individual clients may want to pay to get sustained service. 
  • Financial services: A client may pay a retainer fee to have a financial adviser on call to help with any number of financial issues.
  • Information technology (IT) services: Clients often need ongoing technical work done by an IT service, such as making monthly backups, updating code, performing continual security measures, and more.

What types of businesses use retainer agreements

Many kinds of businesses can benefit from retainer fees. If your business offers ongoing services or you’re on call for emergency help, for example, you may want to set up a retainer agreement with your clients. Businesses that typically benefit from retainer agreements include:

  • Attorneys
  • Paralegals
  • Consultants
  • Advisers
  • Coaches
  • Graphic designers
  • Marketers
  • Accountants
  • Freelancers
  • Other types of professionals

Benefits of using retainer agreements

So why are retainer agreements so popular? Retainer fees offer a level of stability and predictability that can be crucial for the success of small, independent businesses. Retainer fees add to the business’s positive cash flow and the more retainer fees there are, the more predictable the cash flow is. 

If you communicate the terms of your retainer agreement well, your clients will be on the same page as you and expect recurring fees. This leads to fewer disputes and happier clients who can expect a certain amount of service from you each billing period. Clients who have retained your services trust you. Continued services and strong referrals can lead to lasting business relationships and expanded opportunities. 

To sum it up, the benefits of retainer agreements include:

  • Stability
  • Predictability of revenue
  • Positive cash flow
  • Fewer disputes
  • Trust-building
  • Lasting relationships

How does a retainer fee work?

A retainer fee functions as a guaranteed payment for your services and sets the precedent for your client’s expectations. Retainer fees cover future expenses for some duration before paying the final invoice because clients provide funds upfront.

Like any contract clause, a retainer fee clause can protect you from not getting paid. Contracts spell out the obligations of the parties so there are clear expectations. This is especially important if there are any disputes because all the details of the agreement can be referred to, such as the precise amount of the fee and the due dates agreed upon. A retainer agreement helps the client understand what they are paying for, how often they pay, and how to pay the fees. In return, you guarantee service to your client, giving them the optimal experience.

How to implement a retainer fee

The first step is to write a retainer agreement as part of your service contract. At this point, it’s a good idea to consult a lawyer to ensure that the terms are legally binding in your location and that the contract provides sufficient protection for you and your business.

The following are some basic elements of most retainer agreements.

  • Basic details: List the names, addresses, and contact information of both parties involved.
  • Scope: Specifically spell out what you are going to be doing for the client. You may also want to specify what you do not include in the service.
  • Duration: Set an end date if the project is not recurring. The contract does not have a termination date if the service is ongoing.
  • Payment terms: Detail what kinds of payments you accept.
  • Retainer fee amount: Set the retainer fee and frequency.
  • Rights and obligations of parties: Include the expectations of each party.
  • Other clauses: Include other clauses that you and your lawyer feel are necessary. These clauses could be dispute resolution, arbitration clauses, force majeure clauses, termination clauses, or other contract clauses.

There is no one-size-fits-all way of calculating a retainer fee. You’ll need to consider the nature of your business, your business relationships, your particular service, your workload, and the amount of revenue you would like to bring in on a retainer basis that match what your clients are comfortable paying. Your clients may also want to negotiate the retainer fee. 

In general, you can take these steps to calculate your retainer fee and collect payments:

How do you calculate a retainer fee?

  • Define the scope of your deliverables: Be clear about what it is that you will do on the project and what you will not do.
  • Check your calendar: Make sure you accurately estimate the amount of time you have free to work on the retained project.
  • Estimate the time needed: Calculate the total number of hours the work will require so you can set that time aside for the project. 
  • Determine your hourly rate: Factor in your experience, the typical market rate for your type of work, and any overhead costs that need to be covered such as internet bills, professional insurance, or other regular costs.
  • Calculate the retainer fee: The retainer fee will be the hourly rate times the total number of hours needed to work. For example, if your hourly rate is $100 and you will need 50 hours per month to work on a project, the retainer fee will be $5,000 ($100 × 50 = $5,000). 
  • Set up a safety net: You may consider adding a buffer to cover unexpected costs or time constraints, such as 10%. In that case, the retainer fee would be $5,500 in the above example. 
  • Set the retainer fee: Add the fee in a contract clause.
  • Set up payment collection: Use a payment processor or a clientflow platform that has payment collection capabilities. 
  • Continue the retainer arrangement: Uphold your end of the agreement and be on call or do the work for the project you are being retained for. 

How to structure payment

Once you have a contract with a retainer agreement, send your contract to the client securely using your online clientflow management platform. If you’re using HoneyBook, you will receive a notification that the client signed the contract.

The payment structure for a retainer depends on the details of your agreement. Clients can make monthly or quarterly payments for access-based and time-based retainer agreements. They can pay a flat fee each month for access to you and your expertise and services. You can accept payment via a variety of methods using a payment processor.

Work-based retainers are retainers for ongoing work, while project-based retainers are for the duration of a single project that will end whenever the project is completed. You can hold funds in a retainer account to pay your expenses as you incur them during the project. Payments for retainers can be recurring, such as monthly or quarterly for the duration of a project, or for continuing service, such as payments to retain a lawyer.

Be sure that your client knows what payment terms to expect so you can prevent chargebacks.

What’s the difference between a retainer fee and a deposit?

Retainers and deposits are very similar. A retainer is paid to the independent in advance to secure services, whereas a deposit may reserve a service or a date, but it’s typically refunded. Retainers are non-refundable.

Types of retainer fees

How you structure your retainer agreement depends on the services you’re providing and the type of project you’re working on. Here are some common retainer arrangements and examples of businesses that typically use them.

Project-based retainers

A project’s scope determines a project-based retainer, and it lasts until the work is complete. The project should have a clear scope with an established deadline. An example of project-based retainers might be an SEO marketing service that charges a fee for a set amount of work, and whose services are reserved with a retainer payment.

Time-based retainers

A client can pay for a predetermined amount of time-based work over a period, such as monthly or quarterly.

You can use a time-based retainer agreement when a project’s end date is unknown. This guarantees your services to the client for the number of months they pay in advance. Some examples of this are when a public relations company charges a retainer for services a given number of months in advance, or when an attorney charges monthly for working on a court case in progress.

If you use time-based retainers, you should also implement recurring billing. If not, you may still want to remind your clients when payment is coming up so they don’t forget.

Pay-for-access

This type of retainer agreement involves a client paying a professional, such as an accountant, to be available to the client as needed. Clients can make monthly or quarterly payments under this kind of agreement. The details of the retainer agreement will be included in the contract with the client. The contract will include a retainer agreement clause that stipulates that the services are retained with a retainer fee. 

Attorneys often enter into pay-for-access retainer agreements in exchange for being on call whenever they’re needed. This can be beneficial for clients who may need emergency services and can call on the expert for immediate help.

Unearned retainer fees

An unearned retainer fee is a fee that is paid upfront for services that haven’t yet been rendered. This fee is put into an account and secures the time and availability of the expert, such as a consultant. Depending on the contract, some or all of this fee can be refundable if no service is rendered. 

If services are rendered, the fee is earned as the work is completed. An example of an unearned retainer fee could be a consultant working on a business plan who will earn the fee once the work has been completed, such as the funding being issued after a pitch. 

Earned retainer fees

An earned retainer fee is the portion of a retainer that is paid to the service provider, such as a consultant, as the work is being rendered. An example could be the portion of the retainer that the consultant is paid once the work starts. The consultant in this example is entitled to some of the retainer fee as work is being completed. Earned retainer fees can be granted to the consultant in milestones. For example, a percentage of the fee can be paid to the consultant after each part of the project is completed, such as deliverable creation, pitch preparation, and so on. 

What are the best practices for maintaining positive retainer relationships?

Best practices for maintaining positive retainer relationships are in some ways similar to what you may already know about keeping positive relationships:

  • Communicate clearly and often.
  • Use legally compliant contracts with good retainer clauses that set expectations of the scope of work.
  • Be transparent with your retainer fees with no hidden charges. 
  • Provide a consistently valuable service with high-quality work and meet deadlines.
  • Be flexible and accommodate reasonable changes to the project.
  • Resolve problems promptly and fairly. 
  • Request feedback from your clients and act on that feedback.
  • Regularly seek to improve your services and your business in general. 
  • Continue to build strong relationships with your retainer clients.

How do you calculate ROI on retainer clients?

It’s always important to know the return on investment (ROI) for all your efforts, including your client acquisition, marketing, and any other investments you make in your business. The same is true for taking on retainer clients: You want to know what the ROI is when starting a new retainer agreement. 

The basic calculation for retainer service ROI compares the overall value you receive from your retainer client to the cost of keeping that retainer agreement:

Retainer client ROI = (Net Profit / Total cost of investment) × 100

Include in the profit figure all the benefits and revenue that a particular client brings in, such as the total retainer fee. Add up all the costs associated with that retainer agreement. Dividing the profit by the costs should give you a number with a decimal point. Multiply that number by 100 to get the percentage. 

Now what should you do after you’ve calculated the ROI on your retainer clients? If you are just drafting a contract and discover that you will not be getting an acceptable return, you should make adjustments, including adjusting the fee. If you already have an arrangement with a client, you can attempt to renegotiate the contract or drop the client in favor of more profitable relationships. 

Strategies for mitigating risks associated with retainer agreements

Like with any other part of your business, implementing retainer agreements is not without risk. Nevertheless, there are several ways to mitigate common risks.

Scope creep

One of the potential risks associated with retainer agreements is scope creep. What is scope creep? When you write a contract, you typically spell out what you are going to do or not do as part of the project — this is the project’s scope. When the client agrees, they are essentially putting a limit on what they expect out of you for whichever price they are paying. If they demand more than what they paid for, often by demanding small increments of change to the scope, that is scope creep.

The creeping nature of this problem is what might catch you off guard. One little thing here and another little thing there can start to add up. Remember that you have already estimated the amount of time you are setting aside each month for this client. An expanding scope for that project means you are leaving less time for your other clients, which could mean losing business.

Ways to prevent scope creep include:

  • Always have a comprehensive written contract with a scope and retainer fee clause.
  • Be clear about how much time and effort you can apportion in your month for that client.
  • Anticipate changes and implement a rule for contract changes, including scope changes and cost changes.
  • Communicate regularly with your client and let them know how the changes affect your schedule and budgetary concerns.
  • Offer solutions or provide options for additional projects, a new contract, or postponed work.
  • Say no if you have to and refer to your contract if they say they want to walk away. 

Client disputes

Another risk associated with retainer agreements is client disputes. Disputes can happen to the best of us, so it’s best to acknowledge that possibility and take measures to help mitigate the risk. One of the major benefits of having an ironclad, legally compliant contract is that you have a written agreement that you can refer to when disputes arise. A contract is useful as both a way to show someone that they may be mistaken to de-escalate a volatile situation, and also in the unfortunate event of a lawsuit.

For example, if your client is pushing you to work for more hours than you agreed to — see the issue of scope creep above — you can refer them to the written agreement that spells out how many hours you will work. Just because the client has retained your ongoing services and paid for them upfront doesn’t mean they can dictate how much you can work for them above and beyond the contracted amount. Just be sure when you are signing a new contract or starting a new retainer agreement that they should ask questions before they sign the agreement if anything isn’t clear. 

Tips for dealing with difficult clients include:

  • Always have an ironclad legal agreement
  • Anticipate occasional troublesome clients and make a plan to deal with them
  • Be empathetic to your client’s concerns
  • Respond promptly
  • Ask for specifics on their concerns and get everything in writing
  • Offer solutions
  • Just say no; sometimes you have no choice but to refuse demands
  • Learn from mistakes

Get paid faster with automatic payments on an invoicing platform

Regardless of the type of retainer agreement that works best for your business, you’ll want to make payment collection as easy as possible. Get paid faster with a payment processing platform. With HoneyBook, you can combine every step of your clientflow—including booking, proposals, and contracts—all in one place. Get your retainer agreement set in place with a legally binding contract and collect your payments securely online.

With HoneyBook, independent businesses of all kinds have access to the tools and software they need to help with their clientflow from proposals to invoicing and more all on one platform.

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Customize your process for getting paid, whether you want to connect it to your scheduling, intake process, and or contract.

Why now is the best time to start your consulting business

Future marketing consulting

Put the doom and gloom news narrative about the big tech layoffs on mute. There’s another more optimistic trend that is reshaping work, business, and the economy, and driving a new wave of entrepreneurship that could bring a surge in innovation and economic growth.

Future marketing consulting

While large-scale layoffs have become a familiar theme in the tech industry since the onset of the pandemic, the trend continues with over 50,000 tech workers losing their jobs since the beginning of the year, following the 260,000 lost jobs in 2023.

Though the news may be disconcerting, there is room for optimism. Highly skilled workers faced with this predicament have two options:

1. Re-enter the corporate world; or 

2. Turn their skills into their own independent business, particularly in consulting.

Proficient and experienced, these former full-time employees have robust professional and personal networks. Combined with their skillset, they may find this the perfect time to take the entrepreneurial leap, particularly in consulting, especially if it’s an option they’ve entertained in the past. 

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Why? The democratization of powerful digital tools. Once exclusive to large companies, these platforms now empower independent professionals to run their businesses efficiently and deliver exceptional service to clients. Today, it takes just a few minutes to build a website and start marketing one’s talents.

Taking the entrepreneurial plunge isn’t new. The economic upheaval in 2020 spurred a surge in independent business starts. New business applications skyrocketed, with over 5 million applications filed each in 2021 and 2022, according to the U.S. Census Bureau. The trend only accelerated in 2023, with a record-breaking 5.5 million new business applications filed.

Many unemployed professionals leveraged their corporate experience into consulting roles, while others transformed their side hustles into full-time endeavors.

Then, as now, a career challenge presented an entrepreneurial opportunity. 

The new wave of entrepreneurship 

Changing economic conditions in 2024 are driving the latest wave of entrepreneurship. 

Now, with inflation at half of what it was this time last year and consumer confidence on the rise, the question arises: why are tech companies undergoing another round of layoffs? What factors are behind today’s downsizing trend? Companies are reassessing their priorities and directing resources toward specific areas. AI is frequently mentioned as a driving force behind this shift in company strategy.

In response, we’re seeing a shift towards more flexible and independent forms of work and a revitalization of entrepreneurial spirit. Clarity Capital’s survey of 4,188 tech employees laid off during the pandemic finds that 1,007 reported starting their own independent business post-layoff. The top motivations for doing so were:

  • Professional growth (58%)
  • More money (52%)
  • Opportunity to create something new (49%)
Everything in one place

Easily keep track of all your clients and projects using HoneyBook.

The survey also found that most respondents made the decision within a year of being laid off and that the ideas they chose to pursue were most often closely related to roles they had at their former companies.

Most revealing from the survey is that 58% of tech workers who started an independent business after a layoff feel better about their new job security. In addition, 56% reported having a better work-life balance when compared to their previous full-time position and 53% reported better mental health.

A recent HoneyBook study conducted by The Harris Poll surveyed independent business owners in the U.S. as well as employed U.S. adults who are not currently independent business owners. It found similar views regarding the positive aspects of starting one’s own business:

  • 72% of independent business owners say they did not initially aspire to become independent business owners; however, the benefits won them over.
  • 68% of employed adults believe they would earn more money by working for themselves than they currently do in their jobs, while 66% think their overall quality of life would improve.

Overall, the study suggests that many individuals see entrepreneurship as a pathway to financial and lifestyle improvements compared to their current jobs.

Starting your consulting business is easier than ever

Leverage the wealth of experience, expertise, and skills you’ve honed in your corporate role—whether in PR, social media, digital marketing, brand consulting, or content creation, for example—along with the robust network you’ve cultivated over the years, into a successful independent business.

All you need to support your path to independent business success is access to the tools that can help you: 

  • Establish your digital presence – to market your skills and attract your ideal clients 
  • Develop your business processes – to build efficient workflows that lead to high-quality client experiences

Success starts with great client relationships 

Client relationships are the foundation of all successful independent service-based businesses, especially those in consulting fields like marketing and branding. In these fields, services are often highly customized to meet the unique needs of each client. Building strong customer relationships requires:

  • Communicating clearly and frequently with clients on project updates, challenges, and results, utilizing communication formats that facilitate feedback and prompt, professional responses.
  • Managing expectations by setting clear parameters from the outset and maintaining agility and adaptability as projects evolve.
  • Delivering value and quality in every aspect of the project, from research and analysis to presentation and implementation.
  • Ensuring organized and professional project delivery from start to finish, employing tools such as project proposals, contracts, statements of work, client reports, and professional invoices.
  • Personalizing and enhancing customer experience by utilizing data and appropriate tools, including personalized emails, opt-in forms, thank-you pages, and personalized sales follow-ups.

Seize the day: Why HoneyBook is the best platform for consultants

HoneyBook is an end-to-end clientflow management platform that empowers independent professionals to quickly start, scale, and nurture strong client relationships—all in one place:

  • Providing end-to-end clientflow management: Bringing all of the tools you need to manage your clients and projects into one centralized platform. From communication and inquiry management to contracts, invoicing, processing payments, and more. 
  • Supporting a professional presentation at every stage and every customer touchpoint via customizable templates, attorney-reviewed contracts, and tools like the AI Composer that allow you to respond instantly to inquiries and client emails in your authentic tone of voice.  Your brand is also front and center in all documents and communications so that you look polished in every interaction.
  • Creating a frictionless client experience: From the moment of inquiry to booking, project management, and offboarding, HoneyBook offers automations, integrations, e-signing, and online payment processing that seamlessly support clients throughout the working relationship. In particular, the client portal offers an efficient and effective way to stay connected with your clients at every step.
  • Accelerating new and recurring growth: With tools that enable you to respond instantly to inquiries in a personalized and professional manner, you’ll close more sales opportunities, build customer trust, and create recurring revenue opportunities.

Amidst the challenges and setbacks presented by the tech layoffs, there emerges a narrative of resilience and optimism propelled by a new wave of entrepreneurship. Skilled former employees, as well as those currently employed seeking greater career autonomy, now have the opportunity to harness their experience and utilize powerful digital tools like HoneyBook to establish thriving consulting businesses.

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Creating a client forward system to generate revenue in your business with Amber McCue of the Modern CEO

Creating a client-forward system to generate revenue in your business with Amber McCue of the Modern CEO

💡Creating systems to help your business run smoothly is how you accomplish your mission and fulfill your purpose

One in five independent business owners has lost money due to the lack of organization in their business. Creating systems that are strategic and efficient can be exactly what you need to propel your business forward. In today’s episode, we sat down with Amber McCue, the creator of the Modern CEO to discuss generating revenue with a focus on the client.

With the systems Amber implemented into her own business, she turned her side hustle into a multi-million dollar company. She shares with us how we can create systems that truly align with our values, the mindset shifts that we need to make, and how to honor our boundaries.

The Independent Business podcast is powered by HoneyBook, the all-in-one platform for anyone with clients. Book clients, manage projects, get paid faster, and have business flow your way with HoneyBook. Use the code PODCAST to get 20% off your first year as a new member.

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Transcript

Developing a systems mindset

Amber has accomplished a lot in her career. At 18 years old she became a single mom, and now she owns two companies that she can run from anywhere in the world with her family by her side. She credits her success to the fact that she has a “systems mindset.” Creating systems can help alleviate stress and streamline your life so that you can get more done in less time.

Using systems to accomplish your why

Systems exist in your life whether you define them or not. Think about systems as the five W’s: who, what, when, where, and why. For example, when you go to Starbucks to order a coffee, they have a system in place to ensure that you get your coffee efficiently and made exactly as you ordered it. 

In your business, you can set up systems for your deliverables and processes to ensure that everything runs smoothly and is done in an efficient manner.

Systems are about more than organization; they are about accomplishing your “why” behind your business. Creating systems to help your business run smoothly is how you accomplish your mission and fulfill your purpose

Why you need strategy and implementation systems

Life doesn’t always go to plan, which is why it’s important to build margins into your systems. That looks like only booking 60-80% of your calendar instead of 100%. Essentially, if 60% of your time is scheduled, that leaves 40% of it for things that come up. It gives you space to adjust and move things around as needed when things inevitably come up. 

Another way to build margins into your systems is to do some “scenario planning.” Spend a few minutes thinking about how things may not go to plan and come up with ways you can adapt and pivot to those scenarios. 

The systems that all independent business owners need

  • Revenue-generating systems: how are you making sales? Examples include advertising your products and services, prepping your consultation calls, etc. 
  • Client-facing systems: how are you taking care of your clients?
  • Time-saving systems: how can you accomplish more in less time?
  • Life-giving systems: how can you eliminate tasks that drain your energy and focus on the ones in your zone of genius?

4 key factors to consider when creating your systems

  1. Values: how can a system help you accomplish what is important to you?
  2. Efficiency: is the process working as it should, or could it be better?
  3. Alignment: does this system align with your why?
  4. Impact: if the system is for your team, does it make sense to them? If it’s for your clients, does it serve them well?

Creating a strategy to honor your boundaries

Throughout your business and your life, things will be asked of you that do not align with your values. Creating a strategy for how you respond to those things can make it easier to say no and honor your boundaries. 

One strategy you can use is the “Disney no,” which is when you say no without saying no by offering another solution. For example, if someone asks for a meeting with you that doesn’t fit into your schedule, you could propose another time instead. 

The biggest differentiator between the businesses that succeed and the ones that fail

Amber believes that the biggest differentiator between the businesses that succeed and the ones that fail is heart, compassion, and soul. They care for people and themselves. 

Important sections of the conversation

  • [1:45] Developing a systems mindset
  • [6:49] Using systems to accomplish your why
  • [10:51] Why you need strategy and implementation systems
  • [15:24] Building margins into your systems
  • [19:17] The systems that all independent business owners need
  • [30:03] Key factors to consider when creating your systems
  • [33:45] Creating a strategy to honor your values
  • [39:05] The biggest differentiator between the businesses that succeed and the ones that fail

Connect with the guest

Does HoneyBook have fees? Everything you need to know

Woman processing payments on her phone

Understand everything you need to know about HoneyBook payment fees, including how they compare to others, which fees are applied to different transactions, and what you get out of using HoneyBook payment processing. 

Woman processing payments on her phone

HoneyBook is the standard for independent businesses to manage every part of their clientflow. That means you have access to tools for selling your services, booking clients, managing communication, organizing projects, and more–all in one place. 

The biggest benefit of an all-in-one system is the time and money you save without navigating between multiple programs. One example of a critical tool that’s already built into HoneyBook is payment processing

By combining everything you need for booking projects and getting paid, it benefits both you and your clients. On your end, the back-end process is more efficient, and on the client side, they get to experience a streamlined and professional booking experience. 

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Does HoneyBook have additional fees?

When you pay for a subscription, you only HoneyBook fees you have to worry about are your monthly subscription cost and payment fees from processing client payments. There are no additional or hidden fees, so you can accurately add HoneyBook to your budget and feel confident you’re getting exactly what you pay for. 

Why does HoneyBook have transaction fees?

HoneyBook doesn’t charge fees for access to the payments functionality, but it has transaction fees when a client pays you by card or ACH payments (bank transfer). That means you can still accept cash and check payments and mark them as paid in HoneyBook without incurring fees. 

However, the convenience and professionalism of online payments are unmatched. Your clients are already used to checking out instantly when they’re online shopping, and they’ll expect a similar experience when they book your services. 

82% of Americans are already using digital payments, and that trend will only continue to grow. Millennials and Gen Z are beginning to become the majority of the workforce, and they’re already showing a strong preference for a variety of digital payment methods as well. 

Transaction fees are necessary for payment processors like HoneyBook to be able to facilitate the transaction between your client’s card or bank accounts and your account.

Without a payment processor, you would have to set up your own payment gateway, comply with certain requirements, and take full responsibility for protecting cardholder data. TLDR; it just isn’t realistic for independent business owners to accept payments without one. 

By using a payment processor, the fees cover the convenience, security, and professionalism of offering online payments.  

What are HoneyBook’s payment fees?

As of December 2022, HoneyBook hasupdated transaction fees for members. Our fees are changed for the first time in eight years to allow for more pricing transparency, a seamless workflow experience for members, and to maintain a competitive offering. 

In the eight years since we first established our transaction fees, we’ve continued to expand the functionality, flexibility, and security of HoneyBook payment processing. Members now have access to benefits like automated invoices, flexible payment schedules, and dedicated dispute support. 

Despite the additional benefits, HoneyBook fees are still some of the lowest in the market compared to other common payment processors. Our transaction fees apply to credit card processing, including cardholder-entered payments and card-on-file payments. There are also separate fees for ACH bank transfers and instant deposits.

Cardholder
Entered
Card on FileACH Payments (received from clients)Instant Deposit (optional service for transfer of received funds)
2.9% + 25¢3.4% + 9¢1.5%Additional 1%

Cardholder Entered

Cardholder-entered payments means you or your clients are entering their card information for a first-time payment or manually entering it again at any point. These payments take about 2-3 days to deposit into your bank account. Some examples of these transactions include: 

  • You’re accepting payment for a one-off transaction 
  • You’re charging your client for the initial deposit before moving to autopay
  • Your client is changing to a new card to complete payment

Card on File

Card-on-file payments are made using a card that’s stored in your HoneyBook account. Because these are card payments, they also take 2-3 business days to deposit. 

The best example of a card-on-file payment is when you have an ongoing project with a client and you’ve set up recurring payments to automatically charge their card throughout a predetermined payment schedule. 

Among HoneyBook members, we found that card-on-file payments are 20% more likely to be paid on time. They make the payment process easier by enabling auto pay and ensuring clients don’t need to input their credit card information manually for each invoice.

ACH Payments

ACH payments are direct transfers from your client’s bank account to yours. ACH payments have lower processing fees than card payments, but they take longer to deposit (7-8 business days) and are less secure than card payments. 

With ACH transfers, you can face nonpayment due to insufficient funds or closed accounts, which is why card payments tend to be more reliable for business owners.  

Instant Deposits

Instant deposits are an option to fast-track the process of receiving card payments to your bank account. They only work for payments received via debit and credit cards, so you wouldn’t be able to instant deposit an ACH payment. 

While card payments typically deposit in 2-3 business days, you can use HoneyBook instant deposit to receive your payments in about 30 minutes. Because of the convenience, instant deposits include an additional +1% fee, but they’re optional for depositing your payments. 

How do HoneyBook’s fees compare to others?

Not only does HoneyBook offer some of the most competitive processing fees on the market, but it also offers more convenience for independent business owners. While other business management tools leave it up to you to research, set up, and integrate payment processing, HoneyBook already has it built into the platform. 

Other common payment processors like Stripe, Square, and PayPal have higher transaction fees, without additional features built for independent businesses. Some may also include hidden fees, like statement fees, monthly minimums, annual fees, and more.

HoneyBook payment fees are only for processing and instant deposits. Along with competitive transaction fees, your HoneyBook subscription also comes with much more. You have all the tools you need to manage every step of your clientflow, including:

What are the benefits of HoneyBook payment processing?

HoneyBook isn’t just a standard payment processor. Along with additional features that help you manage your business, you also get the following benefits while accepting payments:

  • Invoice templates with customizable payment schedules, including recurring and milestone-based payments
  • Ability to allow clients to pay faster and on time with autopay
  • Built-in payment reminders and notifications
  • Secure encrypted end-to-end payments
  • Easy payment tracking and reconciliation
  • Payment reports and statuses for cash flow management
  • Fraud monitoring and support
  • Dispute management
  • Access to HoneyBook Capital*
  • Access to instant deposits (1% additional fee)
  • No international transaction fees
  • No premium card/card brand fees (e.g. to accept American Express cards)

*HoneyBook Capital is currently only available for eligible users

Why use HoneyBook for payment processing?

HoneyBook goes beyond payment processing to offer an all-in-one clientflow management platform. That means you can manage your pre- and post-booking processes in addition to accepting payments. 

You can capture leads with a branded contact form, vet inquiries with questionnaires, set meetings and sessions with our scheduling tool, and book clients with invoices, contracts, and proposals. With customizable file templates, you can build the process that best fits your business and the way you want to work.

HoneyBook offers independent businesses more than payment processing. It creates a better, branded experience that seamlessly combines the booking process with other stages in your clientflow. As a result, your payment process is more streamlined, professional, and repeatable for all clients. 

Smoother payments

Process client payments quickly and securely with some of the lowest fees in the industry.

From setbacks to success: entrepreneurial lessons with Jasmine Star, CEO of Social Curator

Akua: Now, there's only one word to describe today's episode on the independent business podcast. And that is powerful. Now, if you don't know who Jasmine Starr is, I guarantee you are going to love her after you listen to this episode. She is a business strategist and CEO of Social Curator, social media marketing company. And we sat down for an honest and real conversation about entrepreneurship. Jasmine shares with us her business journey from where she started to the major lessons she's learned and how she deals with imposter syndrome. As business owners, we all experience fear and self doubt and Jasmine reminds us that no matter what obstacle you are facing to keep showing up, do the work and move forward. This episode was such a gift for me and I know it will be for you too. So let's get into it. Hey everyone, this is your host Akua Kanadu and you're listening to the Independent Business Podcast. More people than ever are working for themselves and building profitable businesses in the process. So on this show, I get to sit down with some of the most influential authors, entrepreneurs, and creators to break down the science of self made success so that you can achieve it too. Hello, Jasmine. How are we doing today? Jasmine: I'm doing fantastic. I am very excited for this conversation. Akua: Oh, I'm so, so excited to have you here. As I mentioned earlier, I am part of your YBLE course, which has been just so phenomenal. And honestly, just learning more about you through that whole process. I'm like, you really do champion Independent business owners. So I was like, who better to come on the show and have a real honest conversation about entrepreneurship. And we're just like, we don't know where this conversation is going to go. I mean, I want to definitely know like the path that you've been on, the lessons that you've learned, but I'm excited for you to be here. So thank you. Jasmine: Thank you. You know, when we, when we launched your biggest launch ever, we knew we were attracting a different type of person that's been in my orbit. Now I am, I've the privilege of having a business and speaking and doing podcasts, but the type of person that I get a front row to work with. We knew when we created this offer was going to be different. And so being able to meet and talk with you, it feels like such an immense moment of gratitude because it's proof that when you get to work with people who you're inspired by, you're like, Oh, it worked. Like the messaging is working and the offer is working. So us having this conversation, yes, we're going to serve well, but I just wanted to take a minute and start with an immense moment of gratitude for saying, thank you for allowing me to be part of your journey. And thank you for giving me a front row seat to, as you just build like a massive business. So thank you. Akua: Well, thank you because I mean, the content is packed. It's just so helpful. And just seeing the communities that's being built in it is truly, truly amazing. And so, you know, you have launched, you have launched so many amazing offers, but I want to go back to that. I really want to know who Jasmine Star is, like, where you started, To where you are now. Jasmine: Yeah, absolutely. And one of the things like right before you push record, you had said that one of the things that you're good at or interested in is like when you get people to spill the tea. And so it's like getting people comfortable talking about things that are uncomfortable. I'm like, great, let's do that in this conversation. Like, yes, we could start with my origin story. I'm going to give it a little bit short so that we can get into other things that you want to impact this or people. Well, but yes, starting with the foundation is very helpful so that people can understand why I'm so passionate. Or as my mom likes to say, like lovingly stubborn about my point of view. Um, you know, I dropped out of law school when my mom had a relapse with brain cancer and it really forced me to reconcile what I wanted to do with my life. And so I had a dream of becoming a photographer and I didn't own a camera. And so I was gifted a camera from my husband. We had just gotten married and I said, I dropped out of law school. I'll go back to law school if this thing doesn't work out. I started my business within the first year and made 100, 000. And I think that some people could hear that and be like, okay, wow, that's cool. But I think it was a lot cooler for me because I actually wasn't all that talented. And the fact that I knew that I would be able to create relationships and tell stories and offer a level of service that would allow me to compete in a very competitive space, I realized like, Oh, this is the new way of doing business. It's no longer the person with the most talent or the most money. Or the most education who wins? It is the person because right around this time of me starting a business, this is like the onset of the internet. This is the onset of social media. This is the way that people started learning how to sell and consume differently. And so I was in a position to be at the front edge of that. And I was like, I have nothing to lose. I also have no money. So I'm gonna use this free thing. That's. You know, call social media and let me see how it works. And so I was able to storytell, I was able to build relationships with clients and then they ended up advocating on my behalf. And instead of me trying to do the traditional route of building a business, I just turned to my clients and they were the people who started promoting me. And so other people in my space, creative, specifically photographers, videographers, you know, wedding coordinators, they're like, how are you, how are you doing this? And I just started teaching people like what I was doing. I was teaching how I was marketing my business. And. That slowly led into me creating digital resources. And so I had this shop and I was selling things for like 2 and 99 cents. And I was like, Oh my God, I'm rich. Like the fact that people wouldn't spend like five 99. And then you wake up in the morning and you see notifications. And I'm like, I, I am quite literally making money when I sleep. It was like for, you know, this Brown girl, daughter of an immigrant. It was like, my life had. Totally changed. And so then I started creating additional resources like courses. I then realized that people wanted ongoing community and ongoing education. And so I created a membership. And then on the back of the membership, I realized that there was like a lot of friction between learning marketing information to applying marketing information. So in 2021, launched a tech stack for social curator where we became a A bonafide SAS offering. So we now integrate with the largest social platforms. And so, you know, there's a story of a girl who got a camera from Best Buy and is now a CEO of a tech company. And I get to create podcasts. I get to have conversations. I get to teach other business owners, the art of growing a business. And that brings us here today. Akua: Oh my gosh, that is just absolutely amazing just to hear so many pieces of your journey. And even as I hear yours, I can absolutely relate to certain things as well. Like I am first generation immigrant. My family immigrated from Ghana as well. And you already know where you feel that pressure that you either have to be a doctor, a lawyer, or an engineer like Jasmine: that. I will tell you, like folks that come from Nigeria and Ghana, like their kids have, they have, okay. They have, they have these options. And like, when you're coming from Mexico, it's like, You're going to inherit your father's like, or you're going to become like, a, like, I don't, I don't know. It was very blue color. Like our options were just like, just pay rent, you know, like you're going to live with us because Latinos, we all, we all live with each other until we get married or sometimes we just continue living with each other after we get married. So it was just like, just hold your own. So you had a much higher standard. I will say that I'll just call it out for what it is. Akua: I love that so much. But either way, I think it just gives you such a different perspective. Um, and you move so differently in your business. But one thing that I loved about you was that you said earlier that I didn't have the most, I wasn't the most talented, but what you did was that you leaned into the gifts. You leaned into what you currently had in that season to build the next thing. And then you utilize that to build the next thing. And so something that I'm really curious about to know is, What were some of the struggles that you were experiencing within that? Cause like, it's not an easy thing to do. And I think when we hear the stories, we're like, Oh yeah, like. This is great. But like down to the nitty gritty, like these uncomfortable pieces of that, what was that like for you building these, these offers, you know, especially if things didn't work out, especially if you, uh, failed, what, like, what was that process like for you? Jasmine: You know, I think that it seems about, it seems about like in my timing and in my cadence, Every six years, I start shifting and I heard Kobe Bryant describe it the best. And he had said that he got to a point in his career where the game moved slow and it wasn't that the game got boring and it wasn't that he got good. It was that the game moved slow. He understood the game. He could anticipate where the ball was going. He could anticipate where he should stand to get the rebound. He can anticipate if he knew his three pointer or his free throw was going in. He understood it was such a deep complexity that it allowed him to play at a different speed. And that's not always a good thing. And so what I realized every six years, somehow the game slows down and I love learning and I love being challenged. And I started realizing that every time that, you know, I tell my origin story and it sounds like I can get it down in 30 seconds, right? I got the sting. I got the, this and I got that. And I moved here and people were like, Whoa, you did a lot in a short amount of time. And I think that really what it comes back down to is how When you know that there is a different calling on your life, a different level to play the game, it's going to require you to give up a former sense of your identity and embody something new. And there's two main things at play is that you have to give up something in order to gain something else. And there are many times that it, feels like you're starting from scratch. It feels like you're at square one. But the thing that I have realized now, looking back at all those times where I wanted to pity myself for starting over or say, it's really ridiculous that I'm going to be walking away from a very lucrative photography career to start something else is that we look at square one and it's almost like we have this like tut tut to it. Like, I don't need that. Like I am like the English say, I'm going to suck my teeth at it. Like, Oh, and so we look back at these things and I would always look at square one as if square one applied to everybody the same way all the same time. But now I realize that we will never get the same square one again because every journey, every pitfall, every success, every peak and every valley, we've learned something and we've become a different person. So even if we go back to square one, we are starting something else entirely. Due to the mistakes we made due to the successes that we had. And so when we start over, the pivot is always the hardest because you have to let go. And the pivot is always the hardest because it feels like you're now an amateur when you were so used to building your life and career as a professional. Those are two of the hardest things that I continuously, even in the midst of pivoting myself, you go back to that and you realize, man, This is, this is the stuff that many people don't talk about and this is the stuff that many people don't do because it requires us to feel a level of unsafety, a level of unpredictability and a level of sacrifice that if you got used to things looking a very certain way in your life and you want change, it requires change and when it requires change, it requires risk and whenever we risk something, we want to immediately want to like hedge our bets and keep what we have safe, but dwelling in safety doesn't change. Allow us to grow and I think that there's a lot there to be said, but I just want to have that real conversation around what it means right now as we have changed and pivoted. Akua: Oh my gosh. Yes. Dwelling in safety does not allow you to grow. I mean, number one, you taking us to church today. I mean, that's facts because like this is just all that is so key. And I loved to what you said earlier of you have to let go of something in order to gain something bigger. And do you feel like. As you went into every, like, every six years, and, you know, you're starting something new, what was that shedding process like for you? You know what I mean? Where, because I feel like, Even if you were going into something that you know is going to be amazing, there's still grief in what was, if that makes sense. Jasmine: Oh yeah. I mean, a hundred percent and totally. And I think that I was working with my therapist and she had said that oftentimes it's really exciting. New things are exciting. Spring is exciting. A new bud is exciting. A Caterpillar emerging from a chrysalis is exciting. We have ideas of the butterfly. And. There comes a lot of times in our lives and in our careers where we actually don't take time to express gratitude and a personification of what that journey was. And so she had invited me to look and talk to different versions of my business. And they're still many of them are still in motion, but I had to speak to them almost like a release. So, for instance, I am active CEO of Social Curator. We have a team. We have a very thriving community. I love what I do there. I do coaching. We create content. But she said, I need to invite you to express gratitude as if it is no longer there because we need to create space for what is. And so she's like, you can talk to Social Curator like it's a person and you could say, Thank you. Thank you for what you have done. And girl, I have to tell you that thing wrecked me because I didn't do it in that like, so I just kind of like journaled and I wrote to social curator like she was a real thing. And I was like, you gave us everything. You gave me my house. You gave me my daughter. You've given us the best vacations around. You've given me this retirement fund that blows my mind. You've given us the chance for this brown girl to learn investing. I now understand what a 401k is. Social curator. Thank you for putting food on my table. Social curator. Thank you for showing my pot, like my family, what's possible. Thank you. Social curator for changing future legacies. Like I spoke to her and I was like, at the end of it, I was like, Oh my God. And I'm, and I'm still in it. How beautiful, but it was a way to create emotional distinction of thank you. And more. And I need it just as like, I need to create space for more. And I felt like doing that exercise was so transformative. And I felt like, Oh, I can love you and I can love this and still find time to create. And I think that that was like the first big step for me to do it. Akua: Oh, my gosh. Even hearing you talk about that. I'm not gonna lie to you. My eyes were watering because number one, I think so many business owners, right? We're constantly on this hamster wheel and you know, we wear so many multiple hats and we're just constantly going, going, going. And then once we finally hit what we wanted to hit, we're looking for the next thing. But to go back and actually look at that journey and especially like you have to let go in order to create more and talk like talking to Social Security as a person. That is just. Phenomenal. But like, literally, because then you think about it of everything that social security has done for you. And I think of myself right now as I'm in a journey where my capacity is changing with all the change that I've experienced, especially in the last six months, seven months. There are certain parts of me that I've had to let go. And a part of me felt guilty of feeling that way of like, I'm so excited for these opportunities that lie ahead, but I miss that. And I know I'm, I'm, I'm currently in my own shedding season and my eyes are, you want to just talk about it because it's, it's hard, it's not easy, but you know, just leaning into that of this opportunity of where I'm at now, exactly. I'm able to create more of a life that I love to live. I get to be able to connect with so many amazing business owners like yourself who are impacting others and showing up. And it's truly such a gift. And I think, again, it's a reminder that our business is a gift and how can we lean into it more? And so I. Just love that. And so another question I'm really curious about is, you know, I saw this on social media too, which I love that because you had this like fairness framework, which I found so interesting. So as you're even in, you know, mindset is everything as a business owner and things. There's so many. There's so many disappointments. The things just don't go our way, especially when we have an expectation in our mind. And you had this framework and for, I literally wrote it down myself. Cause I need to start doing this. Can you just share a little bit about what that is and, and how do you do that in your everyday, especially as you're in these major seasons of transition? Jasmine: It's so funny because I've done a lot of work as a person, like in personal development and, um, I, in my family, for better or for worse, we had never even understood what like therapy was. We didn't understand what like life coaching was. It was just, that was just not even in our orbit or in our sphere. And so as an adult, I became a business owner and I realized that in order for me, for, in order for my business to grow, in order for me to continue to scale, I needed to scale. I needed to grow. So I started pursuing ways and ventures of self understanding and discovery. And one of those things was being the eldest of five children in a Latino family. My parents did their absolute best. We did not have money. We didn't have a lot of, um, we had experiences rich in love, not experiences traditionally that people might look at like a vacation or a trip or a lot of gifts. And so in my mind, subconsciously, I had built this drive for fairness. Things had to be fair in my adult life because things weren't necessarily fair in my childhood being the eldest I took a lot of responsibility for my siblings and I think that Consciously and subconsciously I shielded them from a lot So that when I became an adult when I graduated college and I got married and I was able to look at my own life I was then able to assess that that is the behavior that I took as my identity and then I started realizing Oh, I want things to be fair when in life You They are anything but that and I started realizing that the older I got and I had the same group of friends since I was 13 years old and as we've grown up, a lot of different things have happened to us and that when we look at an event and we say it's not fair because things hardly ever are, sometimes the unfairness stops many of us. And it keeps us truncated and stuck in that spot. And some of us have taken an unfair situation and accepted it as part of our story, journey and acclimation to a new level. And so now even further years down the line, I being on the inside as a creator, we have helped more than 40, 000 business owners in their business. And I started realizing a very distinct pattern is that when something's not fair, no people don't normally wake up and say, Today is not fair, but they say, Oh, well, he has that. She has this, he has access to that. She got that. Therefore I can't. So this, a level of fairness, and if it's not fair, then they just don't pursue it anymore. And I think to myself that the business owners who are actually excelling are the people who are accepting things and regardless if they're fair or not. And this goes back to the fairness flow chart. I'm going to save the surprise at the end for the fairness flow chart, but let me just start off by saying. The answer is the same. If it's fair or not. Or not, our objective is the same if it's fair or not. And so there is this thing is like whenever something happens to me and have a visceral reaction, I ask myself first and foremost, like, could I control it? Could I control it? And if the answer is yes, I could have controlled it. Then I moved down, then can I change it? And then I moved down to the final thing. So let's work this through. Let, let's just say, was it fair? Was it fair that I didn't book the client? Well, could I control it? Well, maybe I didn't respond to emails in time. Maybe I showed up late for a meeting. Maybe I was non communicative. Well, then can I change it? The answer is yes. As a business owner, you can always find ways to get better. And if I can then change it, then my action is to keep moving forward. Now, there are situations that happen in life and specifically in business that aren't fair. So I asked myself, is it fair? No. Can I control it? Well, sometimes I can't sometimes because of my gender or the color of my skin or the lack of an Ivy league education or the fact that I don't have an MBA or the fact that I could not get a bank loan. The fact that less than 2 percent of women are getting funding. The fact that less than 0. 6 percent of women of color are getting outside capital for funding or business. That's not fair. Can I change it? No. So then what then not do I do? I keep moving forward. If I can control whether or not something is fair or not, doesn't matter because in either of those situations, if we are to grow in this end, we have to keep moving forward. And I think it's important for me to assess and just give weight. Hey, I'm sorry that that wasn't fair. That really sucks. I'm sorry, but there's nothing else you do. You keep moving forward. And I think that that was the framework that I had posted out on social media, because that has really helped me a lot. Like it's okay. Acknowledge it. Acknowledge it. It's not fair, but guess what? You have no other option, baby. Keep moving forward. Akua: Exactly. Oh my gosh. And that, when I saw that, I was like, I need that. But I just think about that with what you said of there were certain childhood experiences that shaped and molded you and the way that you viewed things in the world. And that totally also leans into how you run your business. And so I think sometimes we forget of like, We are, we are part of, it's literally, it's, it's one in the same. So what are you doing introspectively? What are you leaning into? How are you healing specific things? Um, doing the work to be able to then run a more successful business. And so that's what I love about that piece. And then just the fairness, because I'm exactly the same way, like literally in my mind, I, I'm still working on that where, you know, If something is done in my business that, especially just being a woman of color and the barriers that we face, it leads to having certain types of resentment. And yes, of course I still move forward, but there's been times where I'm just like, Oh, you know what I mean? I just get so angry. And it just, that when I saw that framework, it just let, I felt, I just felt like I had permission. You know what I mean? Where it just felt like just be where I could let go. And no matter what the circumstances are, there's a lot of things in business that we just can't control. So it's like, was it fair? No. It. But acknowledging that and like, okay, that wasn't fair, but give yourself the gift of honesty. Speak truth over yourself of what the reality of the situation is and utilize that to, to propel you forward to keep going, keep holding your head up high and doing the best that you can. So that's why I love that framework. And I'm glad, and I hope that if you're listening to that, you feel that permission as well. Um, that yes, business is hard and it isn't fair. There's going to be aspects where it's not fair, but then just keep moving forward. I want to actually, we talk about this Jasmine: and yes, it sounds good. It sounds warm and. Buzzy, like it's not fair. And we're like, okay, but let's actually extrapolate kind of like a tertiary, like idea that's happening here. So oftentimes we as business owners will create content. We create a point of view or we share something we know, and we deal with our best intentions and we put it out and we really hope that it impacts empowers and, you know, Hopefully it's engaging. Oh, how we love the likes and the photo of the, the likes, the comments, and the saves. We like that. That dopamine quality makes us feel like we can keep on doing this. And I have to like peel back and say that I shared the fairness framework video and it didn't do well, well being air quotes in comparison to the other content that I had posted. But I think it's really important for us because I had no idea that we would have this podcast conversation around something that I had put out. And it was like, Oh, and you have that temptation of being like, Ooh, that really dragged down the average. You know, it's like you, you struggle with that. And you're like, okay, maybe I, maybe I'm not going to be sharing these prayers, like I'm not going to be sharing these learnings because they just not pop in. I had no idea that it would impact like a person who now, like. Number one is like a rad human being who's putting out amazing things into the world and speaking up on behalf of people who maybe don't feel strong enough in their voice. I had no idea that that Baroness framework was going to be empowering somebody who had invested in my business. I had no idea that we would be sharing a framework now with this audience. And so as we put out content as a reminder to anybody who's listening, you have no freaking clue what your content is doing, even if it's one of the worst performing things on your feed, um, in your, um, profile. And so I just wanted to express a little bit of like a moment of gratitude and encouragement for other people who are like, Oh, I'm putting it out and it's not really going anywhere. I had no idea. So thank you. Akua: Thank you. Yeah, absolutely. And I'm not like looking when I was looking at I was definitely not looking at like, Oh, this was the most like in this and that I just remember going through and of course, all of your content was really valuable. But I remember I just saw that and I was like, I flippin need that. Jasmine: And I need that today. That's great. I Akua: love that. I love it. But yeah, no, I love that. I think it's a good reminder that you just again, to your point, you just never know when what people are going to see your continent and what they're And how people are going to be impacting, impacted by it. But, you know, I want to talk about imposter syndrome because I think that's something that all of us as business owners, we struggle with, I mean, especially when you're in new seasons of being uncomfortable and you're being stretched and pulled in multiple ways. And I'm just so curious to know with you, um, Especially as you have like listed, we're so easy to essentially be like, well, I don't have all of these different types of things and instantly think that we're not qualified. But I think you're just such a beautiful testament to that of like, you have leaned in no matter what. And so I would love to know how you exactly deal with imposter syndrome as you go into these new business ventures, essentially. Jasmine: You know, I kind of feel, I don't, Number one, thank you for asking that question, because I think what you do with people who are listening is that you're implying that I have somehow like figured it out and I can't tell if I am completely different. Um, You're really dumb or really strong. I don't know. I, I don't know. I think that there is a self awareness of me to know that I don't wake up in the morning and think, Oh, I'm going to go play for the NBA or the WNBA. You know, like, you know what I'm gonna do? I'm gonna go win Wimbledon. I'm not delusional enough so that if something comes in my mind or in my heart, it wouldn't have been placed there. If deep down, I didn't believe that I had the capacity to succeed at that thing. Many people receive a similar message, a similar knowing, a similar desire that what that thing you're longing to do, like open that Etsy shop or apply to become the CMO or become a content creator or start a podcast. You would not have been given that deep longing and desire. If you didn't deep down believe you had the capacity to achieve it. But then here comes the very first hurdle of many is there is a knowing and a longing and adhering to that requires a discipline to fulfill on the work required for you to get the thing that you want in many times, we even lack the discipline or the consistency to do those things. Now, I am, I am one thing. I am one thing. I am not smart. I'm not fast. I'm not the best. I am not even all that cute. I ain't got that much written. I'm all, well, I'm Puerto Rican. It's like a shame, but I know that I can be consistent. And so that alone, that alone gets me over the first hurdle, which is that is like 90 percent of the thing that stops people. People like, okay, I want to do my Etsy shop. I'm going to do my podcast. And do you know that 90 percent of podcasts ever published in the history of all podcasts, publishing 90 percent do not get past episode 10. Akua: Wow, Jasmine: so. If you just want to be part of the 10%, just do the 11th episode. And so, you know, that has never been all that much of a struggle. It's just like, if I'm going to say I'm going to do it, then I'm just going to do it. And I'm just going to do it and I'm just going to do it. Okay. But then we get into like the, the second realm of like imposter syndrome. And that's just kind of like, you know, Can I figure it out? Can I figure it out? And I've never gone into the game. Like I have never, I didn't start a sass company to be like, I'm gonna be the best, most profitable sass to ever exist. I'm a blow everybody's mind and I'm going to be a 2 billion exiting founder. I didn't. I just said, I think I could, I think I could figure it out. Or I think I could hire people to help me figure it out. That's just been it. And so I think to myself often when imposter syndrome comes up, which it does, why do I belong in this room? Should I be making this investment in my business? Surely they could have asked somebody else to speak. So, um, last month I was reached out by my college and they said, we would like you to give the commencement speech for 2024 graduating class. And my first thought, which is embarrassing to say, is I turned to my husband and I'm like, They could have found somebody better. And he was like, are you kidding me? I struggle with this as much as anybody else. But in every single one of those situations is, I believe, I deep down believe, I don't know how many women are going to be giving a commencement speech. And I don't know how many of them are going to be a woman of color. And I asked myself, could I figure out how to give a commencement speech? And the answer was yes. Could I figure out how to hire a CTO and build a tech stack? Yes. Could I figure out how to record my podcast in garage band and make it a labor of love? Yes, still to this day, I am recording in garage band. Your girl's ghetto is all get out, but I think to myself, I can be consistent and I think I could figure it out and I don't think that I was given a God sized dream if I didn't have the capacity to do it. So yes, I struggle, but it's just those two things. Can I be consistent? Can I figure it out? And then it will take longer than what you hope. And the results will be different than what you expect. And it's going to be so much better than you imagine. Akua: Oh, yes. So much truth in that. Yes. And also too, I just want to say the fact that you keep saying that you're not smart, ma'am, you have me shooketh every week. Okay. So stop, stop playing games. Let's not play games. Okay. Like Jasmine: I do believe, I do believe in the power of words and I do believe that our brain listens to what we say. So what I should say, what I should say, what I should say is I am not the kind of person who's that, that has that like mass appeal intelligence. Somebody who can just take a bite out of many things or somebody took a quick learner. What I will say though, what I will say is what I know of the tiny bit that I know of. I feel pretty confident in that. So thank you. I'm kind of reframing that. Like I do. I do know a lot about a little bit. And so in that regard, I feel confident talking about other anything else, anything else. I'm like, Oh, but in my lip, I do not know. And I do not pretend to know. So yes, thank you for the reframe. Akua: I'm just saying when I hear you speak and every time I'm in every time each week of the session, I'm like, did she say what now? I'm like, Oh, Okay. Well, let me, let me start thinking about this differently. So, um, just want to absolutely highlight that, but I love that so much. I think so many of us, I think of myself when, um, when you said like when you reached out to, you know, literally do a commencement speech at a graduation. I mean, that is huge. And I just remember with my own, I'm going to be pretty transparent here with my own personal conversation with Natalie Frank. And when she, you know, told me the news and then she had said, you know, Akua, I want you to take over the show. And instantly I first thought in my mind. I literally said to her, I said, absolutely not. It's like, that was my first thing. I said, you are in, like, no, I'm not doing this, miss ma'am. And, you know, and she was like, okay, cool, like, that's fine, but think about it. But it was similar to those things that you had said, you know, and it was just so Like, Akua, you can figure this out, number one, and she was having her season of being bold and gutsy, and I was like, I gotta be gutsy too. Like, I can figure this out. I can do it. I have the support. There are people, you know, there's amazing supportive people at HoneyBook who are here. Like, I can do this. And so, I just leaned into it, and it has been like, it's been so uncomfortable, so many moments, but I am learning so much. So much about myself about who I am as a person, who I am as a business owner, the person I want to become the business owner I want to be and how I want to show up in a lot of these spaces. And so just to even say like, they're so, if you're listening, so I know so many of us are, can all relate to that capacity where like there's an opportunity or something comes up and we can instantly automatically be like, huh. Me, you know what I mean? And so just similar to you, I'm like, Oh my gosh, I'm reminding myself to have like, I can do hard things. I'm capable. I can figure it out. And so, yes, I love that. So, but Jasmine: add to that you are consistent. How many shows did you work with alongside Natalie and stay consistent to prove yourself? We stack proof. Our actions just stack proof. Is that like somebody's like, Oh, I want to run a marathon. You don't wake up the next day and you run a marathon. What do you do? You stack proof. It's like one day you run for five minutes and you do that for five days and the next day you run. I mean the next day six, you run six minutes and you do that for another five days and then day 15 you're out there running seven minutes. You're just stacking proof. And I think that's what you did. So two main things for imposter syndrome would be the things that you did. Can I stack proof? Can it be consistent? And can I figure it out? And you did. Akua: Yes. Oh, I know. And that's, that's, it's fact. And I know, I love how you just, it's, it's simple. It's simple when you hear it. It's, we all know it's so much harder to implement, but then when you're actually talking about it, you're like, can you figure it out? Yes or no? It's like almost right. Like putting it in a framework. Can you figure it out? Yes or no? Yes. Okay. Then what's the next step, right? Like that helps you move on to where like, okay. Yes. Like where you can empower yourself to move forward. I love that. And so a question I'm really curious about for you is. What is next for Jasmine? Like, as you were, you know, number one, you're giving a speech at a, at your college, which is amazing. I'm excited to hear about that, but also, you know, I'm gonna take my girl. Everything's content. I'm taking my Jasmine: videographer. I was like, I'm not even recording. I was like, I'm gonna take it so I could share it. Like, you know, it's just like, how many people are going to be in a stadium at that time? But how many followers do I have? Or how many times can I share the things that I have? And I feel like I feel like I want that pressure on myself because I don't feel like you ever give a commencement speech. to the people who are sitting in the audience, you give it to other people who need to hear that message as well. So, yeah. Sorry. Akua: No, no, no. I'm excited. I can't wait to see you in your gown and cap. Because it gave me one of those. I'm pretty sure. I'm like, okay, okay. I know. I know. I'm excited. But I'm really curious to know, like, what is next for you? You know, and especially, how do you continue to lean in with whatever it is that you're doing? And, What are you excited about? What are you nervous about? I'm so curious to know. Jasmine: Uh, I had a conversation with my mentor and she was on my podcast and she had said something that has kind of been like a defining thing for the me the past year. And she had said that you earn the right to solve bigger problems because there's like the story in entrepreneurship that we're saying, well, when we get to this place, When we get to that spot, it'll be easier or more manageable. And that was like a common misnomer and you know, I'm very fortunate that the business has continued to grow year year over year. And whenever I said, okay, well it's just when I make 100, 000, well it's just when I make 100, 000 in a month, it's just when I make a million dollars, well it's just when I make a million dollars in a month, it's just when I make a million dollars in a day. And so it's always this moving line that never became capital E. Enough. And so I think that my big move this year is to really embrace the bigger problems I get to help solve for people, the more money the business makes. And so this whole year has been a year of exploration is how might we solve bigger problems? And one thing that I distinctly realized in 2022 was I'm the kind of person who, uh, I love to solve things. I love to be like, I'm a get her done kind of girl. Like, let's just go, go, go. And, uh, you, a separate entity can only get to a certain point on your own in anything. Positive, amazing, powerful, transformative has been on the back of the Team that we have built. And so for me, it is a whole, like, in fact, just this morning, I went on a walk and oftentimes I get my clearest thoughts when I'm exercising, because I don't listen to anything. I don't do anything. I'm just in the zone. And so I had sent a voice memo to our COO. And I said, I just want to say that as a CEO, many times we function in two zones, reactive or responsive. At our most healthy where our, our majority is responsive. I'm responding to things, initiatives, visions, reactive is it's emotional. I need to give a quick response and I'm going to send you a message today that is fully responsive so that if ever in the future, it's reactive, you know, the true root of it. Undistilled undiluted. And I said, I love the structure of the business that we have today. And I want to keep this structure. I want to keep this structure and I want to double and double and double and double what we're doing in this business. So this is me being fully responsive. And then I listed everything I currently love. I am no longer in meetings that I don't need to be there to be like a hype up girl. I have two standing meetings a week. I have large swaths of work days. Yesterday was a work day where I get to only do things that only I can do in the business. If somebody else in the business can do it. I need to not be doing it. I need to get out of the weeds. I need to co create with a powerhouse team and I can do the thing that only I can do in my business. I only want to do only things that I can do in any time. So one of the questions that we had, we had a conversation with in the podcast channel on slack and they were talking about finding the right type of editor. So we had three different editors work on it and I was listening to the nuances and they wanted my feedback and I said, I love that. I was asked about the feedback. Okay. But let me tell you, I trust our podcast producer and let me tell you that even though our COO came back to us, she's like, yeah, but she had an opinion and you had a different opinion. I was like, but let me just tell you at the end of the day, yes, I preferred somebody else for X, Y, and Z, but it wasn't 10 X greater. I was listening to nuances that the average listener is not going to listen to. So the fact of whatever time it took me for me to be in there, to look at pop mics, to figure out the kind of acoustics, I'm like that 30 minutes was worth the dollar amount that served the business much better than. What we did in the podcast and she's like I hear it loud and clear and I was like that felt so good So where am I at right now? I'm asking myself How might we solve bigger? Problems and I think it's been a very interesting Conversation because the minute you start asking these questions your mind starts opening up to pathways that probably had other people Always been there and you never allowed yourself to see them. It is the same thing as like, Oh, if you get a new car and it's like a red, whatever, a red BMW, all of a sudden you start seeing red BMWs. They were always there. They were always there, but you just see them differently now. So all of a sudden we start asking, like, I wonder if we could. And then all of a sudden, out of nowhere, these conversations that I'm having, I'm like, Oh, it's always been there. And so right now it's just a year of deep exploration. And I told the team, I was like, so how little can we pull on making an ask of the audience? How little can, how much can we over serve and ask for a little? And so that's where we're at right now. Like, how do I solve, because the bigger, the problems that I solve for people who could really afford it, the more I'm empowered to create, create, create, create to the people who need it the most and can't afford it. And so that's been our big focus this year. Akua: Oh my gosh, I love that so, so much and just how you are leaning more into exploring and just creating that space for yourself so that you can become more innovative. And I think innovation is key because you know, the landscape of entrepreneurship, it's just changed. It's changed so much over the years. Like what just even just from four years ago, like after the pandemic, I feel like everything has just shifted. And how, and the way that we do business. completely has changed. And innovation is one of the best ways to help you stay on top of things, but also to where you can do the things that really truly bring you joy and that are really going to serve your audience and serve them well. And so, oh my gosh, Jasmine, I could talk to you for hours and I'm like, oh my gosh, Jasmine: can I add, can I add just one time? I need to make sure there's a moment of clarity because then when you're like, I love how you add so much time and space for creativity and innovation. And I'm like, That is true, but it is not 100 percent of the truth. And I want to make sure that I'm sharing 100 percent of the truth because I don't want somebody listening to it and being like, must be nice. What Akua said was true. I am creating space. I am allowing for innovation. I'm in a zone of creativity, but please know it comes at a cost. And the cost for me right now is coming in time. Every minute of my day is truly scheduled. And I even have to plan ideate for X set up meeting for Y build out team structure for whatever. And also At money, we were cutting off revenue streams because they were requiring me to be the driving force behind it and not the team. So please understand that. Yeah, it's a beautiful zone. It's also a very precarious zone and we live and die by the sword so that we, you know, we cut down the crops that we think are going to impede on what we hope to be a much larger harvest in the future. So that's, that's the 100. Akua: Well, thank you for saying that because I, a question I was going to ask literally for you is kind of so much of how you are creating that space, because I feel like as, especially with solopreneurs, like it's so difficult where it's like, even for me at times, like I said, my capacity has changed and I've been like, Oh my gosh, like I want to be innovative. I want to create that space, um, where I can, you know, think of something new and this and that and that, but I'm so exhausted and like X, Y, Z. So I love that you shared that because I'm like, Yeah, it's gonna come at a cost. I didn't even think of that. I literally did not think in my mind that that could like what you have to give up in order to be able to create those spaces, but you need to create. I feel like it's important to create those spaces because that's how your business is essentially going to evolve and it's and take you into a journey that you would never think of. I never ever in my life wanted to be a storyteller. I never thought that I never even thought that my business was gonna be, you know, but it was just like, yeah, I literally kept having those spaces to be creative. I just remember like in the beginning journey in our business, when you have much more of that space, but as things continue to evolve and scale and grow, the amount of time just becomes so much more limited and it's just so much more difficult. And then like personally at times where I have felt stagnant in my business and I'm like, I just don't have that space to create and it's such a hard hump to get over. And so I'm glad that you were just overall just transparent of like, I am creating the space, but also to like, let's look at the facts here of like what you also have to give up. So absolutely love that so much. And Jasmine, this, this whole conversation has just been so, so impactful. I mean, I could talk to you for hours. This is the first time we're Jasmine: meeting and I'm like, Oh my God, like if you left us alone in a coffee shop, we'd open and close it down. And then be like, this time tomorrow, Akua: with snacks, get me some good snacks. I will never leave. Exactly. And chatting about all things about life and business. And no, truly, this has been a life, life giving conversation. And I think if you're listening, cause I have felt it too. I've just, I feel just a certain amount of, um, permission in certain areas of letting go and, and you know, what. Really thinking about again, what kind of business owner do I want to be? And, and in this new season of life. And so a question that we love to end with for every episode is what do you think is the biggest differentiator between the businesses that succeed and the ones that fail? Jasmine: Consistency. It is literally everything you want is on the other side of consistency. And it is so simple, but it is not easy. Akua: But now I'm going to add to that because we hear consistency all the time. And I've also also heard you got to be consistent with what looks like for you and all those different types of things. How do you stay consistent? Jasmine: You plan for it. And I want to be very clear that consistency is not doing the same thing again and again. That's the exact definition of insanity. Einstein said, Insanity is doing the same thing again and again and expecting a different result. All I'm saying in regards to consistency is just decide to show up and do something. Because it is the something that will lead to a slightly different iteration the next day and a slightly different iteration the next day. So it's always a constant evolution, but you have to just first make the commitment to do something every day. And what we want to do is we want to quantify, well, if it's only a 10 minute thing, did I really do it? So is it really worth it? The answer is always yes. It is better for you to put your head down at the end of the day and say, instead of watching that one extra episode of Netflix, instead of sitting around scrolling for 10 minutes, I should have been engaging. It is that one. an act of consistency that truly defines those who succeed and those who do not. And I know I sound pretty hard nosed about it and I'm bullish. I am bullish around making a decision because here's the thing. They, the people say, Oh, it's so easy for people to be consistent if they're disciplined. And I'm like, no, we're all disciplined. We just decide to apply our discipline in different ways. It is very, it takes somebody very disciplined to watch an entire season on Netflix. That's discipline. Akua: So true. That's Jasmine: discipline. It's a lot of discipline for somebody to eat a whole pizza instead of three or four slices. That's discipline. It's just as disciplined for you to say, I'm not going to watch Netflix. And instead I'm going to go through and plan my content for the next month, the next week. I'm going to find my content for the next day, depending on how much time you have. We're all disciplined. Where are you applying your discipline in order for you to get the benefits of consistency? My mind is blown. Because Akua: that is so true. I have never, ever, ever thought about it that way. It is so true. It is absolutely, it's a different, it's a, where are you applying the discipline? I have absolutely shamelessly watched so many episodes of Grey's Anatomy recently. You sound like my sister in law. It caught me and I was like, here I am again. And you know, halfway through season one in a day, you know what I mean? Where I was like, oh. I have work to do. I have work to do. And that's so true. And I think, again, it just makes me think about number two things. My therapist reminded us, she's like, choose your heart. Everything in life is hard and it's just a different type. Choose your heart, right? Like if you're watching and this is not to guilt anybody, cause I, like I said, I just did it the other day now, but you know, if you're out here watching or doing something where you know that your time is best spent, you're going to have a harder time, right? Like I always think to myself now, like, okay, if I don't do this now, what's going to happen? Like, I'm going to have a harder time doing this or that. So I'm like, just get it done now. Choose your heart. Right. And so I remember I saw this, uh, social media posts. I'm like, what consistency looks like? And it was like all of these, uh, illustrations and it had like, like a bottle, like, right. Like one day maybe you could give just, you know, 10 percent or the next day you can give 50 or then the next day you can give a hundred and then, or 20%. And it's like, I think to your point of just like, still just showing up to do something that's going to move the needle forward in your business. So I love that so much. And Jasmine, thank you. Thank you so much for being on the show today and for people that wanna connect with you, where can they find you? Jasmine: Well, I have to say that this conversation has been very McDreamy. You can find me@jasminestar.com or on my podcast, the Jasmine Star Show, . Akua: Oh my gosh. Uh, this conversation has been so much fun. Thank you. Thank you so much for being here and for everybody listening until next time.

💡You don’t have to be the most talented person doing what you’re doing; you have to be the most consistent.

Entrepreneurship is full of ups and downs. The phrase, “that’s not fair” is all too familiar to far too many of us, yet we have the power to take back control of our journey and move forward. In today’s conversation, Jasmine Star gets extremely candid and vulnerable about her entrepreneurial journey. If you’re ready to continue moving forward in your business and grow in your own time, this conversation is one you can’t miss.

Jasmine Star is a photographer turned educator, speaker, and tech CEO. Along with teaching online courses and leading a membership for creative entrepreneurs, she also founded Social Curator, a “digital marketing agency in your pocket.” 

The Independent Business podcast is powered by HoneyBook, the all-in-one platform for anyone with clients. Book clients, manage projects, get paid faster, and have business flow your way with HoneyBook. Use the code PODCAST to get 20% off your first year as a new member.

The Independent Business podcast is powered by HoneyBook, the all-in-one clientflow management platform for independent business owners to streamline their processes and create remarkable client experiences. Book clients, manage projects, get paid faster, and have business flow your way with HoneyBook. Use the code PODCAST to get 20% off your first year as a new member.

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Transcript

From law school to tech startup CEO

Jasmine was in law school when her mom’s brain cancer relapsed, which caused her to drop out and evaluate what she really wanted to do with her life. She decided to chase her dream of owning a photography business, and in her first year in business she made $100,000. Jasmine credits her success to her ability to connect with people, not her talent. 

She started her business at the onset of social media, and used it as a free tool to tell stories and build relationships. Her clients connected with her so much that they started promoting her, and soon other photographers and entrepreneurs in the creative space asked her for tips on marketing their businesses. 

From there, her education business was born. She started selling digital courses and created a membership where creatives could connect with each other. Next, she founded a tech startup called Social Curator, which is a monthly subscription app that Jasmine calls, “a social media marketing agency in your pocket.”

Two truths about starting over

Jasmine has pivoted several times in her business, either because an idea didn’t work out or because she wanted a new challenge. Each time, she has realized two truths about starting over:

  1. You have to give up something to gain something else, and oftentimes, it will feel like you’re starting over from scratch.
  2. Even if you’re starting at square one again, your square one today is not the same square one you started at in the beginning of your business. Your mistakes, successes, and the lessons you’ve learned along the way put you at a new square, one that is more advanced than your previous one.

To help her through the process of pivoting, Jasmine’s therapist asked her to speak to each part of her business, past and present, and express gratitude for it. Doing so helped Jasmine to release what was and embrace what could be.

How to stop letting fairness hold you back from chasing your dreams

It’s easy to get caught in a comparison trap, especially as a creative entrepreneur. You see others’ success and think that it’s not fair because they have more resources than you, more access to training, more support, etc. Living with an “it’s not fair” mindset can hold you back from pursuing your business goals and dreams.

As the eldest of five kids in a Latino family, Jasmine experienced this in her own life until she finally realized that she had to get over her desire for everything to be fair. She created the Fairness Flowchart to help her move through this mindset. Now, when something happens that feels unfair, she asks herself these questions:

  1. Is this fair?
  2. Could I control it?
  3. Could I change it?

No matter what the answers to the above questions are, the outcome is to always move forward. Sometimes you need to acknowledge that something isn’t fair by telling yourself, “I’m sorry, that sucks, let’s keep moving forward.” Other times, you evaluate what you could’ve done better, and then you keep moving forward. 

Combat imposter syndrome with consistency

All independent business owners face imposter syndrome at some point in their journey, and the way to combat it is to stay consistent. You don’t have to be the most talented person doing what you’re doing; you have to be the most consistent. 

Did you know that 90% of podcasts ever published don’t publish more than ten episodes? If you want to succeed, you need to be the person who publishes episode eleven. 

The next thing to ask yourself is, “can I figure it out?” When Jasmine started her tech company, she didn’t set a lofty goal to be a $2 billion exiting CEO. Instead, she asked herself if she could figure out how to make this business a success, and the answer was yes.

To combat imposter syndrome, you need to be consistent and have an attitude of figuring it out along the way. 

The biggest differentiator between the businesses that succeed and the ones that fail

Jasmine thinks the biggest differentiator between businesses that succeed and the ones that fail is consistency. Everything you want is on the other side of consistency, and the way to stay consistent is to plan for it. Consistency is not doing the exact same thing over and over again; it’s a commitment to do something every day. 

Important sections of the conversation

  • [2:52] From law school to tech startup CEO
  • [7:33] Two truths about starting over
  • [15:14] How to stop letting fairness hold you back from chasing your dreams
  • [24:10] Combat imposter syndrome with consistency
  • [32:54] What’s next for Jasmine
  • [41:33] The biggest differentiator between businesses that succeed and the ones that fail

Connect with the guest

How to avoid scope creep with your clients: 10 actionable tips

Conference call - how to avoid scope creep

Managing scope creep is essential to completing projects on time and building positive client relationships. Read on to learn what causes scope creep, what it can do to your projects, and how to prevent it. 

A project’s launch is always exciting. Things start to move forward, you get into a rhythm, and the client is happy with how things are going. 

Then, the client asks you for “just one more thing.” It may seem small, and you incorporate it instead of pushing back. Then something else comes up, or that small change suddenly seems big. Before you know it, the whole project’s timeline is in jeopardy.

Suddenly, you’re stuck in scope creep. It’s as frustrating as you’ve heard, and at its worst, it can sink a whole project. Learning how to avoid scope creep is essential for any business — and luckily, it’s all about planning.

Jump to:

What is scope creep?

Scope creep happens when a client or outside circumstances add to a project’s scope of work. These changes usually mean the project will take longer, it’ll cost more, or both, causing dissatisfaction and frustration.

Common examples of scope creep include:

  • A contractor learns that a homeowner wants to add a fireplace to their project, requiring additional planning and ordering.
  • A website development team is 95% finished with a site, having allocated the entire budget, when the company decides it also wants an e-commerce store.
  • A content writer agrees to write eight blog posts for a flat fee. They submit the first piece, but the client returns it, asking for a completely different structure and two social media posts to accompany it.

Scope creep happens in every industry, from sole proprietorships with four- or five-figure contracts to multibillion-dollar companies. Fortunately, it’s also avoidable at every level.

The importance of avoiding scope creep

Scope creep causes extra work for the entire team, but that’s just the tip of the iceberg. The fallout ends up causing severe problems for both project teams and their clients. Examples include:

  • Missed delivery dates: With more work and the same amount of time to finish it all, you fall behind.
  • Projects going over budget: You set your project budget for the original parameters. If you don’t adjust to the changes, you may easily exceed that budget.
  • Poor-quality results: Faced with unexpected requirements, the team rushes the project to completion or moves forward with insufficient resources. 

Preventing scope creep helps you avoid these consequences with:

  • Smoother planning and communication
  • Less time spent troubleshooting
  • No rushing to completion
  • Stronger team morale
  • A better rapport with the client

Avoiding scope creep even protects your reputation. People come to know you as the business that handles everything, no matter what. 

Everything in one place

Easily keep track of all your clients and projects using HoneyBook.

Causes of scope creep

To avoid scope creep, there needs to be ongoing clarity around the project’s parameters. You can lose that clarity in many ways, including:

  • Unclear project objectives: A project is vulnerable to spontaneous changes and additions without well-defined goals.
  • Poor communication: Regular updates and check-ins are the only way to clarify the project’s expectations. 
  • Lack of change-control processes: Well-managed projects have a standardized method for altering the scope. A change-control process defines the required steps for requesting, reviewing, approving, and implementing any desired changes.
  • Shifting client requests and demands: Clients may knowingly or unknowingly test a service provider’s boundaries by asking for more than they originally ordered. If the provider doesn’t have a way to manage that request, it expands the project’s scope.
  • Insufficient risk management: Without a plan for what to do “just in case,” any unexpected issues may add to the project’s scope.
  • Inadequate planning and estimation: Scope creep is almost inevitable if the original project requirements need to be revised.
  • Incremental changes: When “one more little thing” becomes multiple additional asks, the project’s scope grows out of control.
  • Minimal stakeholder involvement: The better you understand stakeholders’ requirements, the less likely scope creep becomes.
  • Unclear team dynamics and competing priorities: Teams must be on the same page regarding resources and scheduling. 
  • External factors: Some things are out of a team’s control. An extreme weather event can change the scope of a project in unexpected ways.
  • Underestimating the project’s complexity: It’s easy to visualize a project only in its simplest form. Start your planning process by considering how complex it could get, and then work backward from there.

10 ways to stop scope creep from wrecking your projects — and your reputation

Scope creep is harder to stop once it gets started. Prevent it before it happens by setting boundaries and keeping the line of communication open.

It always helps to have a plan B —and, if necessary, a plan C. Follow these 10 steps when scoping your next project and keep the creeping away.

1. Define the project’s scope up front

Before onboarding a client, hold a discovery session and learn what you need to know about the project. This step helps you establish the project’s parameters and create a workable schedule and budget. HoneyBook’s lead and contact forms allow you to ask questions and provide information up front to qualify your leads.

2. Document the project’s requirements

Write a scope of work describing the basic project parameters: participants, objectives, tasks, deliverables, costs, and timelines. Store the document in a convenient place where key stakeholders can access it. Project requirements are easy to document in a HoneyBook contract. Designed by legal experts, HoneyBook documents are customizable to meet your needs.

3. Always have a written contract

Client contracts set mutually agreeable goals, expectations, and parameters for a project. You can refer to your contract if the client proposes any changes or disagrees with how you handle unexpected circumstances. The contract should also describe how you’ll handle potential disputes.

4. Set up a change-control process and document any proposed changes

Before you start the work, get clarity on how you’ll handle any proposed changes. Specify in writing how the client can ask for changes and how you’ll implement the changes if appropriate. Use Honeybook to create files that you can edit and send for approval anytime throughout the project lifecycle.

5. Create a clear project schedule

Identify all of the steps and deliverables in the project’s timeline. Document who is responsible for each step and when meetings and check-ins should be held. If you create a project calendar through HoneyBook, adding delivery and meeting dates to each contract is easy. Your team and clients can find all of the necessary information in one place, leading to a clearer understanding.

6. Verify the project’s scope with stakeholders 

Moving forward with a project as soon as the team is on board can be tempting. Before putting boots on the ground, though, you should send the scope of work to the client and get their input. Ask them to verify when they’re ready to move forward.

7. Communicate regularly with your client and the project team

With HoneyBook, you can store all client communications associated with the project. Conversations are easy to find and reference, saving you the hassle of searching through your email inbox.

8. Discuss how changes will impact the project’s schedule

If the client proposes any changes or additions, discuss how executing those changes would affect the overall process. Calculate additional budgetary considerations and pushed-back deadlines whenever you can. Talk about whether those changes would be worthwhile economically and logistically.

9. Provide options for handling additional work

Suggest ways you can comply if the client wants to proceed with an addition to the project scope. Ensure each option is agreeable to you, and then invite the client to choose what works best. For example, would they prefer to create a new contract for the new deliverable or add the cost to their current contract?

10. Know when to say no

There may be times when you and the client can’t find common ground. If there’s no way for you to handle the additional scope without taking a serious hit, graciously decline. Have your contract handy if the client threatens to walk away. Continue offering alternatives if you can, but close the door if necessary.

Other tips to consider in stopping scope creep

In some cases, more communication is enough to stop scope creep in its tracks and keep the project moving forward. Here are three things to consider when searching for common ground:

  • Client education: Discuss the impact of a request on the project’s timeline, budget, and overall success. Go beyond deliverable due dates and discuss the snowball effect of scope creep. For example, if a web developer were to add an e-commerce store to a site at the last minute, what compromises would they need to make elsewhere?
  • Case studies and practical examples: If scope creep threatens a project, share examples of how you’ve managed similar situations with previous clients. Explain how you controlled the project’s scope for the best possible outcome. If you don’t have stories from your business, borrow someone else’s!
  • Scope management tools and software: As a clientflow management platform, HoneyBook keeps you and your clients on the same page. Forms, contracts, invoices, and project documents are easy to find and reference so scope creep doesn’t take you by surprise.

Keep your project scope documents in one place with HoneyBook

A successful project requires collaboration between you and the client. Clear communication and a mutual understanding of the project’s scope are essential. To keep that information organized, you need a place to store all of your client information — conversation and meeting records, pricing, planning documents, and more.

HoneyBook is an all-in-one clientflow management platform that enables businesses to secure new clients, qualify leads, book appointments, manage projects, and maintain relationships.

You can use HoneyBook to create proposals that streamline the scoping process. Each proposal can include contract, invoicing, and payment processing details. It’s easy to edit file templates and send them to your clients while collaborating on the final scope. Plus, you can communicate with your clients and schedule meetings through HoneyBook — all in one place.

Keep your business organized

Manage each step of your clientflow and ensure nothing slips through the cracks. 

What is going on with the IRS and its changes to Form 1099-K?

Filing taxes

Learn about the latest changes to Form 1099-K and determine if it’s necessary for filing your business taxes this year.

There’s been quite a bit of chatter about Form 1099 lately, and for good reason. The Internal Revenue Service (IRS) recently changed the guidelines on these tax forms several times. Considering the fact that the U.S. tax code is already complex, these changes have led to confusion among business owners. 

If you own a business and use a payment processor (like HoneyBook) to collect payments, it’s important that you look for your Form 1099-K. After all, this form helps you accurately declare your self-employment income for the year and file your tax return. So what changes has the IRS made to Form 1099-K, and how do they impact your business?

Jump to: 

What is a Form 1099-K?

Form 1099-K is a document that taxpayers receive to report credit/debit card transactions and third-party network payments. It reports the gross amount of all reportable payment transactions within a calendar year.

All payment processors (HoneyBook, Stripe, PayPal, Amazon Business, eBay) are required to issue a 1099-K to users who meet specific criteria, including: 

  • Gross payments received must exceed $20,000, and the total number of transactions must be more than 200, though this will be gradually changing throughout 2024 and 2025.
  • The individual or entity receiving payments must be a business or organization that generates income (personal transactions don’t need to be reported). 

Keep in mind that even if you don’t meet these criteria, some payment processors may still send you a Form 1099-K if it typically sends one to all of its users. You only need to report the income on the form if you fall into the IRS criteria. 

How should business owners use their Form 1099-K?

All payment processors are required to send Form 1099-K to relevant users by January 31. Once you start collecting your forms, be sure you’ve received them from all of the payment processors you’ve used in the past year. 

Verify that all of the information on your forms is correct, especially your taxpayer identification number. It can also be a good idea to cross-check the payment information on your forms with the transactions in your own records. 

When doing your taxes, you should use your Form 1099-K to accurately report your total income. Even after doing your taxes, be sure to keep your forms in your records so you can refer to them if needed. 

What changes has the IRS made to Form 1099-Ks?

The IRS initially planned to make changes to the Form 1099-K reporting threshold for the 2023 tax year. However, this update has been delayed twice. 

What happened in 2022?

In 2022, the IRS announced that the threshold for the 1099-K form was dropping to $600 in payments processed for the year. Near the end of 2022, the IRS decided to delay this change until the following year. The threshold for 2022 remained $20,000+ and 200 transactions. 

What happened in 2023?

In November 2023, the IRS once again changed its mind on the threshold change and announced that the Form 1099-K threshold will remain $20,000+ processed and 200+ transactions. This time they announced a gradual approach to the reduction of the threshold:

  • 2024: Must have processed $5,000+ of payments
  • 2025: Must have processed $600+ of payments

What HoneyBook members need to know

If you’re a HoneyBook user, you may or may not receive a 1099-K tax form from HoneyBook this year. Whether you do depends on the amount of money you processed through HoneyBook as well as the number of transactions you processed. 

In 2022 and prior years, members must have processed $20,000 or more through a minimum of 200 transactions via HoneyBook payments to receive a Form 1099-K. In 2023, those same thresholds apply, but that won’t be the case in 2024. You’ll receive a Form 1099-K if you process $5,000 or more through HoneyBook payments this year. 

If you reached the $20,000 payment threshold in 2023, you should have already received your Form 1099-K from HoneyBook. It’s important to carefully review this form for accuracy. If you have any questions or concerns or need to make changes to your 1099-K, our support staff is ready to help. To download your Form 1099-K, log into HoneyBook and click “Company Settings.” Then navigate to “Tax Information” to access your tax forms. 

It’s also worth noting that some states have already reduced their reportable-income thresholds for businesses that operate within their boundaries. If you’re in one of those states and you meet that state’s threshold, you may receive a Form 1099-K from HoneyBook. Here’s a list of those locations and their associated requirements:

  • Missouri: $1,200 or more
  • Illinois: $1,000 or more and three or more transactions
  • District of Columbia: $600 or more
  • Maryland: $600 or more
  • Massachusetts: $600 or more
  • Vermont: $600 or more
  • Virginia: $600 or more

How to prepare for tax season?

There are multiple forms you’ll likely need to file your taxes. These typically include Form 1099-K, Form 1099-NEC, and any W-2s you receive. It’s also important to keep track of any income and expenses you generate throughout the year and to have those documents handy at tax time. Think about any tax deductions and what you’ll need to calculate them. Moreover, if you’d like to estimate your tax rate for the year, head over to our self-employed tax calculator.

Disclaimer: The advice featured in this blog post is for sharing general information and knowledge. For specific legal, financial, tax, and professional advice, please consult an authorized professional.

The difference between the businesses that succeed and the ones that fail 

💡If you are scrappy and learn to figure things out, you will be successful. 

The Independent Business Podcast launched one year ago this week, so what better way to celebrate than with a roundup of our favorite episodes?

At the end of every interview, we ask our guests what they think is the biggest differentiator between the businesses that succeed and the ones that fail. In this episode, we’ve gathered some amazing answers from our incredible guests that will leave you feeling empowered and inspired. 

If you want to listen to the full episodes from each soundbite, they are linked below. 

The Independent Business podcast is powered by HoneyBook, the all-in-one clientflow management platform for independent business owners to streamline their processes and create remarkable client experiences. Book clients, manage projects, get paid faster, and have business flow your way with HoneyBook. Use the code PODCAST to get 20% off your first year as a new member.

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Transcript

Tip 1: Show up consistently

Instagram growth coach Brock Johnson joined us in episode 32, where he shared what he learned from losing 14,000 followers in one week. He said that the key to success on social media is to stop overthinking or trying to create perfect content; instead, focus on showing up online consistently. Successful business owners take action and bet on themselves.  

Tip 2: You are the secret sauce to your business

In episode 46, messaging and positioning strategist Danait Berhe talked about creating an empathy-forward sales strategy for your business. She reminded us that you are the secret sauce to your business and success. Everything else, such as social media, ChatGPT, and sales strategies are simply tools to enhance your business. 

What you do, how you do it, and your mindset is everything in your business. If you are scrappy and learn to figure things out, you will be successful. 

Tip 3: Your business and purpose must go beyond your bottom line

In episode 20, wedding photographer Katelyn James told us about running a $250,000 per month business. She said that your business must be rooted in purpose and how you are changing people’s lives, not just your bottom line. When you attach yourself to a strong vision, people will be attracted to your business. 

Tip 4: Preparation is key to business success

Christiana Yebra, owner of Currently Events, joined us in episode 39, where she explained the systems and strategies she used to turn her side hustle into a business that generated half a million dollars in revenue. She shared that being prepared, researched, and thoughtful is what turns a pipe dream into a bonafide business. 

Seeking out resources, such as this podcast, and connecting with other business owners in your area is a great way to learn how to grow a successful business.

Tip 5: Learn how to pivot

In episode 31, Tonic Site Shop CEO Jen Olmstead showed us what we can learn from Starbucks and the PSL. She shared that the most important thing a business should be able to do is pivot. Successful businesses look at what’s working and what isn’t working and make decisions based on what they’ve learned. The key to pivoting successfully is to tune into your audience and listen to what they want.

Tip 6: Successful businesses are committed

Emmy Award-winning designer and CEO of The Future Chris Do talked about the importance of focus in episode 27. He said that businesses that fail have shiny object syndrome and get easily distracted. They think that their new idea is better than their original idea, so they lose sight of the core vision of their business. 

You have to commit to your business, even in the difficult times when you aren’t seeing the results you want. The way to do that is to improve your skills, read books, hire a coach, and go to workshops.

Tip 7: The key to business success is discipline

In episode 44, the CEO of Élevae Visuals Shay Cochrane explained how she built multiple six-figure businesses working one 16 hours per week. She said that the key to business success is disciplined focus. Actually doing the important work, rather than being distracted by social media and other tasks, is how you win in business.

Tip 8: Embrace your own magic

Bestselling author and lifestyle expert Mattie James told us to embrace our own magic in our businesses in episode 14. She also told us not to give up, because the people who succeed are the ones who keep going, even when they make mistakes. 

Successful business owners tap into their magic and continue showing up for their business. They know that they are gifting their light to the world and giving others permission to embrace their own magic too.

Tip 9: Don’t be afraid to try things again

In episode 35, photographer Hope Taylor explained how she built multiple six-figure passive income streams. Her tip is don’t be afraid of trying things again or try things from a new angle based on what your audience needs. It’s easy to feel defeated when something, such as a course launch doesn’t go as well as you hoped it would, but that doesn’t mean you should give up. 

Instead, you can learn from your past experiences and implement changes. Treat your business like an experiment so that you are always learning from what is and isn’t working.

Tip 10: Understand your data

We kicked off this podcast with the founder and host of the podcast to Cubicle CEO Ellen Yin in episode one, who shared a powerful reminder of how understanding your data will lead to business success. You have to put yourself out there and love to fail so that you can learn from your failures and improve. The most successful entrepreneurs go hand in hand with failure, and they use their data to learn and grow. 

Tip 11: Let go of your ego

In episode 30, LinkedIn expert Lakrisha Davis explained why successful business owners need to let go of their egos to succeed. Your ego holds you back from succeeding because it stops you from asking for help. You have to have the humility to hire a coach or get advice from your peers. You also need to have empathy for your audience so that you can continuously improve the value of your service and ask for feedback without getting offended. 

Tip 12: Be controversial

Author of Financial Feminist Tori Dunlap told us to be controversial in episode 19. Have an opinion and something to say. You can’t be everything to everybody, and having strong opinions will attract your target audience. They will be excited to engage with you and purchase from you multiple times. Don’t pay attention to the people who don’t understand your brand. Instead, prioritize connecting with the people who do. 

Secure online payments with these 11 tips

Paying online securely

Provide secure online payments and protect your business and your client’s payment information with these 11 tips.

In today’s digital landscape, cybersecurity hazards are a significant concern for online businesses. Approximately 2,328 cyber crimes take place every day. And the global annual cost of cybercrime is anticipated to reach $8 trillion annually in 2023. A report by the FBI shows that at least 422 million individuals were impacted by data breaches in 2022. Sounds terrifying, doesn’t it?

Fraudsters are always on the lookout for vulnerabilities they can leverage to steal data. Consequently, businesses and their employees must act cautiously to safeguard their clients’ confidential information. Your brand’s reputation can depend on secure online payments—one data leak, and clients may jump ship for a competitor.

Clients prefer paying for things with a credit card. According to a study done on client preferences by HoneyBook in partnership with Visa, 80% of clients prefer to pay with a credit card. Debit cards closely follow credit cards. To accept secure digital payments, independent business owners must first understand the security hazards associated with taking them.Understanding vulnerabilities will help independents use the right protocols to decrease security risks for clients that want to pay online. Creating a secure online payment process is part of doing business. In this article, we’ll go over the best secure online payment tips to guard your client and business information. We’ll also highlight the most secure online payment methods you can leverage.

Jump to: 

What secure online payments mean for your business

  • Builds customer trust by ensuring their data is protected.
  • Reduces the risk of fraud and associated financial losses.
  • Ensures compliance with regulatory requirements to avoid penalties.

What do you need to know about secure online payments?

Taking secure online payments involves a series of steps. Taking these steps helps you avoid vulnerability to data breaches and unauthorized transactions.

All businesses must follow certain standards and protocols to ensure they can take secure online payments. One such crucial standard is Payment Card Industry Data Security Standard (PCI DSS), which outlines specific rules for maintaining consistent payment security worldwide.

PCI DSS applies to all businesses that accept online payments via card. Independent businesses must handle cardholder data with utmost caution and implement the appropriate security requirements. The level of compliance needed depends on the number of transactions processed annually, with higher levels having stricter requirements.

The importance of security in online payment processing

With the emergence of eCommerce for products and services across the globe, more and more people prefer to pay online. This surge in online payment processing has also led to an increased risk of data breaches and cyber theft taking place. Therefore, every online business (big or small) needs to implement the right kind of payment security in order to take secure online payments.

Moreover, by establishing a secure payment infrastructure, businesses can instill trust and safeguard sensitive customer information. This includes protecting online invoices, which have become an integral part of modern eCommerce. Ensuring the right kind of payment security not only protects financial transactions but also fosters a sense of reliability and confidence among customers.

Use a platform that offers secure online payment processing

If you’re an independent business owner that uses HoneyBook, a clientflow management platform with secure online payment processing capabilities, security protocols are already in place. One more thing to take off your plate!

If you’re not using HoneyBook yet, you should know that in addition to secure payment processing through our online payment software, HoneyBook allows you to manage each client touchpoint in your clientflow from one app. That means from capturing and qualifying a lead to sending invoices, to taking payment and gathering feedback, you can manage the client interaction from “hey” to “pay.”

Pro tip

Your clientflow is the complete process of selling and delivering your services. Whether you’re emailing leads, signing a contract, sending an invoice, or taking payment–each step you take to deliver your services is part of your clientflow.

Different security protocols for taking secure online payments

Moving on, let’s have a look at the different types of online payment security.

Tokenization 

Tokenization replaces client payment information with a series of randomly generated tokens or characters. This leads to increased transaction security while reducing the need to manage sensitive customer data and minimizing data transmission over the Internet.

Address Verification Service (AVS)

AVS compares the address of the customer provided at checkout with the known address of the cardholder. It is important to note that AVS is useful only when paired with other fraud prevention methods.

SSL-TLS protocol

This is an internet protocol that encrypts website communications, which are crucial for secure payment processing. Customers can easily verify SSL-TLS usage by checking for a lock icon or ‘HTTPS’ in the website’s address.

Card Verification Value (CVV)

CVV is a three-digit code on the back of the credit card. It is meant to verify the purchaser has physical custody of the card.

3-D Secure or 3DS

A widely used payment security method, this analyzes over 100 data points such as IP address, transaction history, etc., to assess the risk of a transaction. The process involves collaboration between the issuer bank, the acquirer bank, and the protocol infrastructure to authenticate or challenge the transaction. If the transaction is deemed fraudulent, the customer may undergo additional identification such as one-time passwords (or OTP) to prevent scams.

Top 11 online payment security tips for independent businesses

Small businesses often don’t realize the risk they pose to themselves and their clients. They assume that hackers will only hack into the systems of bigger organizations. However, this is not true. According to Forbes, small businesses are three times more likely to be a target of cybercriminals as compared to larger companies.

Fortunately, there are some online payment security best practices that can protect businesses and their customers. Here, we will look at the most important ones.

1. Use two-factor authentication

Implementing two-factor authentication is a simple yet effective way of adding a layer of security to your digital payments process. It involves requesting the customers to supply an additional form of digital identification before they can complete a transaction.

For instance, many businesses send a unique code to the customer’s email or as a text message to their smartphone, which they must supply to authenticate the transaction. But make sure to make two-factor authentication as frictionless as possible.

2. Implement secure electronic transaction (SET)

SET is a framework and digital protocol that is designed to enhance the security of secure online payments. Developed in alliance with notable card companies like VISA and Mastercard, SET encrypts all credit card data, thus hiding personal information from fraudulent actors.

Additionally, SET also prevents merchants from viewing or accessing the cardholder’s personal information, further reinforcing the transaction’s security.

3. Get an SSL-TLS certificate for your website

SSL stands for Secure Sockets Layer. It is a security technology that encrypts communication between the customer’s web browser and payment service provider.

Transport Layer Security (TLS) is the upgraded version of SSL that fixes existing SSL vulnerabilities. It is currently the industry standard. TLS authenticates more efficiently and continues to support encrypted communication channels.

4. Verify every single transaction

With online transactions, it is hard to verify who is on the other side of the screen. However, to avoid fraudulent transactions, here are a few simple steps you can take.

  • Request the customers to manually enter their CVV or security code number
  • Check for address verification (AVS) match
  • Request a phone number so you can call in case of any discrepancy
  • Carefully look for suspicious patterns, such as unusually large orders or orders from geographic areas with a high rate of fraud
  • Validate the provided email address

5. Necessitate strong passwords

Cybercriminals try to hack into user accounts with the most frequently used password combinations of names, birthdays, and more. Requesting customers to sign up with a strong password can add a supplementary line of defense.

In an event where a customer cannot remember their password, there must be a ‘forgot your password’ functionality that enables them to reset their password.

6. Ensure PCI DSS Compliance

As discussed above, PCI DSS is a collection of compliance regulations and security protocols that major card schemes follow. Adhering to this compliance is required for any business that accepts credit or debit card payments.

PCI DSS Compliance ensures a safe and secure environment for credit/debit transactions with zero details left prone to theft or fraud.

7. Opt for a secure payment processing platform

If you take payments online, it is crucial to use a secure payment processing platform. Some examples of payment processing platforms include HoneyBook, Clover, and PayPal. 

HoneyBook is technically more than a payment processing platform, and offers a suite of tools to support independent business owners at every stage of their clientflow. Using a reputable payment processing platform can help save you the headache down the road of dealing with fraudulent charges and leaked data.

8. Refrain from storing customer payment data

It is advisable for businesses, especially small businesses, to not store any sensitive customer payment data. Most hackers target small-sized businesses owing to their lack of security. Therefore, it is best to avoid keeping this information to avoid it from falling into the hands of the wrong individuals.

For example, if you have a financial planning website that helps users save taxes efficiently, you would require every user’s financial details. But if you keep storing all the data, you increase the chances of a potential cyber threat.

The flip side of this is that if your platform is secure enough, you have less to worry about.

9. Educate employees about security protocols

Data breaches often occur due to human error. That’s why anyone accessing client information—whether it’s just you, or your employees—must be trained on how to handle sensitive information. Educate your employees on how to implement email encryption, and on how to identify and deal with suspicious texts or emails that may be phishing for login details.

Make them aware of suspicious email attachments that can contain malware. Also, explain the menacing effects of sharing sensitive information with unauthorized individuals. Finally, stress the significance of logging out of their workstations every time before they leave their desk, and using a personal hotspot instead of an open WiFi network. These are some of the best practices that can reduce the risk of data breaches due to human mistakes.

10.  Invest in cyber-liability insurance

Purchasing cyber-liability insurance is a proactive step that can safeguard your business against many potential risks and financial losses that occur due to cyber threats.

Despite your best efforts to secure your business operations, there is always a chance of dishonest employees or skilled hackers exploiting your clients’ details. Cyber-liability can cover your bases and provide coverage for many expenses related to a data breach. It can mitigate the financial impact of a cyber-attack and ensure that your business is well-equipped to handle such scenarios.

Implement a fraud detection tool

Businesses use fraud detection tools to detect and prevent fraudulent transactions, protect against financial losses, and comply with industry regulations. Common types of fraud detection software include:

  • Rule-Based Systems 
  • Anomaly Detection and Transaction Monitoring
  • Machine Learning and AI-Based Systems

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Try the only payment platform designed to integrate with your clientflow.

The most secure online payment methods

Businesses must protect their customers by accepting only the most secure payment forms. Some of the safest online payment methods are also the most common:

Credit cards

Credit cards are indubitably the safest and most secure method for online payment.  All renowned credit card processors comply with PCI DSS guidelines. Additionally, credit cards use online security features such as fraud monitoring and encryption to keep the customers’ private details safe.

Debit cards

Small business owners can use debit cards for accepting payments as they are also governed by PCI compliance. Also, in most cases, debit card use from a peculiar internet protocol address can trigger supplementary identity verification measures.

ACH Payments 

ACH stands for Automated Clearing House. This kind of payment mode enables customers to directly transfer funds from their checking account to another bank account. ACH Payments adhere to several security protocols that ensure the customers’ private and confidential data is kept safe.

Mobile wallets

Nowadays, a plethora of digital wallets have emerged such as Amazon Pay, Apple Pay, etc. Clients benefit from such payment forms as they mask credit and debit card numbers. Businesses, on the other hand, benefit from this as the customers must use a digital PIN or fingerprint to authenticate the purchase.

Wire transfers

A wire transfer is a method of electronic fund transfer where money is sent from one bank account to another. The funds are transferred through a secure network such as SWIFT, i.e., Society for Worldwide Interbank Financial Telecommunication. Although this payment form is extremely safe, it is often used for large or international transactions. Also, they may involve a certain fee charged to the customers.

Offer secure online payments through a payment platform that does it all

Owning a business of your own has numerous perks. But, it also comes with many considerations. Among them is protecting your clients’ private financial information. You can follow the aforementioned tips to safeguard your customers’ details and keep yourself stress-free, or you can use a clientflow management platform with payment processing capabilities like HoneyBook that implements these safeguards for you.

HoneyBook is a clientflow management platform where you can communicate with clients, send invoices, receive secure online payments, and more. HoneyBook allows you to manage every client interaction from one place. 

Try HoneyBook‘s payment processing software

Customize your process for getting paid, whether you connect it to your service selection, scheduling, and/or contract.

How to create an invoice and get paid fast

Woman working on creating an invoice

Discover how to create an invoice that looks professional and gets you paid fast. Follow this step-by-step guide to create an easy-to-follow invoicing process for your small business. 

Man sits at desks and drafts a plan.

Mastering the art of how to create an invoice is a pivotal step for small business owners. Initially, the prospect might seem a bit tedious, but don’t worry. Creating an invoice is a straightforward process that takes just a few minutes to understand. Moreover, it’s reassuring to know that you can test your skills by sending an invoice to yourself, ensuring that everything aligns seamlessly.

One of the keys to success is utilizing invoice templates to craft professional invoices. In this guide, you’ll walk through the invoicing process, and explore how to design professional-looking invoices.

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The Importance of Creating Invoices

If you’re an independent business owner, you will need to make invoices. An invoice is what a business sends to a client to request payment in exchange for services, functioning much like any other bill, such as for utilities or at a restaurant. The term “invoice” is commonly used by service-based businesses and independent contractors. Creating a professional invoice, especially online, is crucial for independent business owners because it:

  • Establish yourself as a professional service
  • Create a document that ensures easier financial record-keeping
  • Make it easier to keep track of invoice payments and allow your clients to do the same
  • Establish a payment schedule
  • Provide clients with documentation of what services they’re paying for

Invoicing clients helps you build trust with your current and future clients. Trust is crucial for maintaining long-term clients and is essential for positive customer relationships.

Create a professional invoice for free.

Customize, download, and send a professional custom invoice in minutes.

What to include in an invoice

The easiest way to make an invoice is to use an online template with smart fields that auto-populate your client’s name. For example, HoneyBook offers many invoice templates for every type of independent business, and it’s easy to swap out the template information with yours. 

Whether you’re manually creating invoices from scratch or using a template, be sure they include the following: 

  • Business name
  • Service provider’s (that’s you!) contact information
  • Invoice number
  • Invoice date
  • Total cost
  • Payment(s) due date
  • Payment terms
  • Payment schedule
  • Bill to (buyer/payer information)
  • Product details or description of services provided
  • Accepted payment methods
  • Where to pay
  • Terms and conditions
  • Company logo
  • (Optional): Discounts and taxes
  • (Optional): Seller notes
HoneyBook invoice
HoneyBook invoice template

1. Business name

Use a business name in the header section of your invoice If you don’t have a business name yet, just use your name or the name that’s on your bank account where you’ll receive payments.

Using your business name on invoices is more professional than using your personal name. 

What if I don’t want to use my real name and I don’t have a business name yet?

If your business is unregistered, you can and should still use your business’ given name. The US government allows you to operate an unregistered business under a fictitious name, so long as that name is not legally registered and claimable by anyone else. This is known as your Doing Business As (DBA) name, which you may see as “d/b/a” when you receive payments. 

2. Service provider’s (aka seller’s) contact information

When you create invoice documents to send to clients, you’re considered the seller. You should include all of the relevant contact information for your business. At a minimum, this would include your phone number, website, and email address. However, you may also want or need to include a physical mailing address and your social handles.

3. Invoice number

If you DIY your process for how to create an invoice, you’ll need to use an official numbering system. There’s no single way to do this, but you’ll find it makes everyone’s lives easier if you use a numbering system that avoids repeating the same numbers. 

Using online invoices will take care of this for you by automatically assigning numbers. The most common numbering systems you’ll find for invoices include sequential systems (1, 2, 3, etc.), or systems that incorporate the year, month, and invoice number for that year. Clientflow management systems like HoneyBook automate this tedious process for you.

4. Invoice date

There’s nothing complicated about how to create an invoice date. Just use the date you plan to send the invoice. Note that this should always be the date you send the invoice, not the invoice creation date you created the invoice.

5. Total cost

Provide the total cost of the service you’re invoicing for. Make sure this number is easily visible. Many invoice templates and designs make the total cost among the largest and most easily-identified text on the page. 

6. Payment due date

Ensure clients have all the necessary payment details, especially when the payment is due! Make sure the due date is easy to see. Some invoice templates may put the due date right next to the amount due.

If you use HoneyBook, this is especially seamless. HoneyBook invoices send automatic payment reminders so your clients will never be bothered or forget to pay you. They can then pay directly in the platform, and you’re processing payments in one or two clicks with some of the lowest payment fees in the biz.

7. Payment terms

Specify the timeframe within which you expect payment, such as ‘Payment due within 30 days of invoice date.’ Include any late payment fees or interest rates to encourage timely payment. Clearly state acceptable payment methods (e.g., bank transfer, credit card) to avoid any confusion. Including clear payment terms helps maintain a professional relationship with your clients and ensures you get paid for your services promptly. 

8. Payment schedule

Outline the frequency and amounts of payments, especially for projects with multiple stages or milestones. For example, you might require a deposit upfront, followed by progress payments at specific project milestones, and a final payment upon completion. Clearly defining a payment schedule helps manage cash flow and sets clear expectations for both parties.

9. Bill to

Your “Bill to” section should include the name and contact details of the individual or business that will be making the payment for the services rendered. Ensure you have the correct name or business entity listed here. 

If a business tries to contest payment, having the wrong entity name may make it more difficult to legally defend your right to payment. If you aren’t sure what the “Bill to” name for a client should be, ask the client how to create a professional invoice with the correct entity name.

If someone disputes your payment and you use HoneyBook, our dispute specialists will be at your side making sure things get settled—the right way. 

10. Product details and/or service description

You won’t need to spend too much time researching how to create an invoice details section. You have the flexibility and control to provide a detailed itemized list of the product or service you offered or if you prefer, a brief description of the product or service you offered. You should also include the pricing information in the details section, including cost per item or hourly rate, as well as how many items were created and sent or how many hours were worked.

11. Accepted payment methods 

Some platforms that allow you to create and send an invoice also serve as integrated payment processors. These services make it easy to accept payments online regardless of which payment methods the client uses; they typically handle the processing for you.

If you do plan to give the client alternative methods of payment, such as credit card, ACH, or bank transfers, list all of the forms of payment you accept. With HoneyBook, you can even request the client “pay now” directly from the invoice. Now that’s easy.

12. Where to pay

Specify the preferred payment method and provide clear instructions on where and how to make the payment. For example, include your bank account details for a bank transfer, a payment link for online transactions, or a physical address for checks. Providing clear payment instructions helps ensure prompt and accurate payments, reducing the likelihood of delays or errors.

13. Terms and conditions

You may want to provide a section that explains the terms and conditions of the service of your service, products, or preferred payment methods. This could include your return or cancellation policy or the penalty for overdue invoices and late payments.

14. Company logo

Add your company logo to instill a sense of confidence in the client that your business is professional. A professional logo is excellent for building your brand and for customer relationships across every type of business, from freelancing to consulting.

15. Discounts and tax

You don’t need discounts or taxes sections on your invoice from scratch if you don’t offer discounts or if you aren’t required to collect taxes for your services. If you do provide discounts, or if you’re legally required to impose a sales or services tax, create a section that identifies the amount incorporated into the final payment due amount. 

16. Seller notes

Many invoice templates have a “Notes” section incorporated into them by default. If you’re creating an invoice for your small business, you may want to have a notes section for any details that extend beyond just the service details. It’s a nice place to leave a lighthearted “thank you” note.

Fast, reliable payments

90% of HoneyBook invoices are paid on time or early.

How to format your invoices

Creating and formatting your invoice is easy with HoneyBook

Creating invoices isn’t just about sending a request for payment; it’s also about making a professional impression. Here are some things to consider for your invoice design and format. 

Invoice formats

  • Online vs. offline: Decide whether you’ll create and send invoices electronically or in print.
  • Digital signatures: Consider incorporating digital signatures for added security and authenticity.
  • PDF invoices: Portable Document Format (PDF) is a widely used format for invoices to clients who want to download or print the document.
  • Invoice software: Client management software like HoneyBook allows you to design, create, and send invoices to your client on the same platform you use to sign contracts and schedule appointments. 

Invoice design best practices

  • Branding elements: Include your company logo, brand colors, and fonts to create a cohesive and visually appealing invoice.
  • Consistency: Maintain a consistent design across all your invoices and other business documents. This reinforces your brand and professionalism. HoneyBook offers invoice templates that allow you to customize your invoices with brand elements effortlessly.
  • Clarity and readability: Ensure that all information on the invoice is clear and easy to read. Use a clean layout with appropriate spacing.
  • Professional language: Use professional language and tone in your invoice, conveying a sense of competence and reliability.

Pro tip

Try designing an invoice with HoneyBook’s free invoice generator and see how easy and fun it can be to create a professional-looking invoice design in no time. 

How to send an invoice

Once you’ve created your professional invoice, the next step is delivering it to your client. Here are some ways of sending an invoice to your clients:

  • Email: You can send an invoice directly to your clients via email by converting them into PDFs. 
  • Print and mail: If your client prefers a physical copy, you can print an invoice and snail mail it to them. 
  • Invoicing software: Software like HoneyBook allows you to design, create, and send invoices. You can even get paid directly through HoneyBook
  • Online payment portals: Online invoicing and payment platforms like PayPal or Stripe also let you request and collect payments. 

Time is the key here. Prompt delivery increases the chances of timely payments and helps you maintain a positive relationship with your clients.

HoneyBook invoice email
HoneyBook invoice email

Invoice FAQs

How do I make a simple invoice?

To make a simple invoice, you can use online invoicing software or templates. Fill in your business details, client information, invoice number, date, total cost, payment due date, and payment terms. Ensure it looks professional and includes all necessary information for easy payment processing.

What is the quickest way to invoice?

The quickest way to invoice is to use online invoicing software. These tools automate the process, allowing you to create and send invoices quickly, track payments, and manage your finances efficiently.

Is it hard to create invoices?

Creating invoices is not hard, especially with the right tools. Online invoicing software makes the process straightforward, allowing you to create professional invoices in minutes. Simply input the necessary information, and the software will generate the invoice for you.

What should you not put in an invoice?

When creating an invoice, avoid including personal information such as your social security number and irrelevant personal comments. Stick to the necessary details related to the transaction, such as the services provided, cost, and payment terms.

Level up your business and get paid faster

Invoicing and getting paid is a crucial part of your business, but it’s just one step within your broader clientflow. To get paid as fast as possible, it’s best to ensure you can manage everything in one place, from invoicing to onboarding, project management, scheduling, and more. 

Consider a clientflow platform like HoneyBook, which goes beyond invoicing to ensure you can manage your entire business and client relationship. 

With a single, robust tool, you can save time and money and create more professional touchpoints with clients. 

Offer seamless payments

Offer multiple payment options with HoneyBook and get paid directly through your invoices.