Monday, April 7, 2008

Be the Good Cop AND Bad Cop...or go broke.

I have been having trouble collecting three very large accounts from clients that are related to each other. My friend has always played the bad cop in our business and I just go out and build the business. However, I have come to the conclusion, if I am not good cop AND bad cop at the same time, I am NEVER going to make the next two months. It pretty well comes to this...if someone owes you money...DON'T BE THE NICE GUY/GAL. If you get into this habit, your cashflow will crash and you'll be broke!

The expensive lessons I have learned are as follows:

1) Don't let unscrupulous people take advantage of the fact you are just beginning in business. They know you are offering a great service at a great price so make them pay like everyone else, or find someone else. It is better to go without a few customers than have them owing you a ton of money.

2) Get a deposit and contract up front. Do not start any work until the check clears. You can usually tell the ones that will end up not paying by the rush they are placing on you.

3) If someone doesn't pay, SUE THEM! Do it now! Don't wait as there are limitation on certain liens and so on.

Always keep in mind, you are doing good work for a good price and in order to keep doing that, don't always be NICE! Fire your bad clients immediately to make way for the millions that will come to you once that negative force is off your business.

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