I have heard from fellow entrepreneurs too many times the result of taking on a client or project that was more predicament than profitable. So, in the spirit of the old adage “all money isn’t good money,” I figured a blog post was warranted.
Good money. What is it? It’s a slang reference to clients, projects, and opportunities where all of the following occur:
- your business provides a quality, value-adding product and/ or service
- the customer is supportive, even collaborative, where required in the fulfillment of your product/ service
- payment is made as agreed, and on time.
Sounds simple enough but, the humanity factor often introduces challenges which derail one, or all, of these elements. Miscommunication is usually at the root of the issue, yet ego (on both sides of the transaction) is always the monster in the room.
Bad money. Think back to your last experience that was unnecessarily complicated. In matters of business this often looks like:
- the expectation set on your delivery of the product/ service is not met
- the business & the customer cannot get on the same page
- the customer has buyer’s remorse, and wants out (with their money still in hand).
Here’s the bad news: it’s on you! It’s your business, and none of these points should exist because all 3 are best addressed before they ever become problems.
The fix. To tell a brief story, I’ll use my consultancy as an example. A few months ago I had a meeting with a prospective client. The meeting resulted from meeting one another at a conference. Learning of my expertise, we agreed to meet for coffee to discuss how I could help his new venture grow revenue. Looking back, the meeting should have ended when he informed me that he “doesn’t like people.” A red flag but, not an uncommon sentiment among tech entrepreneurs. Talking further, I realized the key of what I am sharing with you here …MAKE IT PLAIN! An at-length discussion of details that should be published on your website is a wasted discussion. Waiting for someone to send you key intel like their business plan should be published, not just in a follow up email. You don’t want them lost in the details, eyes glazed over, and the deal’s casket lowered into the earth.
The solution:
- Make it plain! Fully detail what you do, the timeline/ process, their role in the process, and payment terms.
- No proposals. Instead, publish your terms on your website, incorporating them into your Terms Of Service.
- No checks …if you can help it. On time payments are easier if payment processing if fully digital.
- Speak English. No acronyms or industry jargon; just plain English to increase your chances of being heard.
- Listen! Listen to understand; not looking for keywords or waiting to speak. Listen intently!
More bad news: you will still have the occasional problem child for a customer. What you won’t have is nowhere to point them to quickly get them reengaged in the process.
Now, do the work.