Business is done with the head, rather than the heart, right?
When starting out, most new businesspeople think that they have to lap up every bit of cash that comes their way. How else will you get off the ground? Or, you have started out on your own because you’re an idealist, you believe that business should be built on trust, and vow to have open, honest relationships with all your clients. So it’s one extreme or the other; prostitute your soul for a few quid, or idealism to the point of naivety. Either way, it’s only a matter of time before you get stung.
I learnt that the hard way. Mine was a mixture of both. Feeling I needed to grab any money that was offered to me, and thinking I could do things differently.
Then you come up against people who can’t pay, don’t want to pay, don’t feel they should, or are just nasty pieces of work who trample on small businesses just because they can.
Of course, sometimes, these situations can’t be predicted. A lot of companies have become insolvent over the last couple of years, and we can’t always know this is coming.
But I feel that now, after one or two horrible, drawn out situations, I have developed an instinct for the messers about, time wasters and difficult characters I encounter, whose business will be politely declined.
If I think about it, I had it all along. But now I’m listening.
So, if you’re starting out, don’t dismiss that intuitive feeling you have about someone. It doesn’t mean you can’t work with them, just make sure you’re watertight in your Ts & Cs or get paid up front. It’s not just about your head. Trust your gut.
Sorry to hear that you’ve been stung. Can we send Brad and Tim round to sort em out?!
Agree with what you say about trusting your gut. When I get the feeling a potential client would be a non payer, I do 2 things: send a formal quote for top end service and agree tighter terms to reduce risk (e.g. % payment upfront, more payment milestones, clear consequences of non-payment, etc.).
I look forward to us discussing terms this week