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I was once told by a client… “Most people do business with you because they like you.” While that doesn’t say much about the product, what he said certainly does have merit. After all, there are also people who DON’T do business with you, sans a great product, because they DON’T like you. There are some people who are put in charge of a department and they use that job to get back at, let’s say, the black kids who teased them in high school or they have something against women because of their mother or being rejected by the love of their life OR they may be all about supporting people from their college fraternity…who knows.

Sometimes we have a tendency to prove the potential client’s theory about us wrong but we are not Licensed Clinical Therapists. For the most part, as business owners, we are in touch with our intuition and we know when someone is probably not going to support our business… unfortunately, we also like a challenge and this whole process can be such a waste of time and it drives our business esteem in a negative direction. The effect can be long lasting and it doesn’t have to be.

There have been times that I was was left scratching my head when I saw competitors with far less of an effective product getting advertising that I just could not seem to —————————–get. There was one client I was so determined to get that I actually stayed on them for 5 years (laugh). Let’s be realistic folks, that was just foolish. I could have done so much more with that energy. If someone does not support you within their next budget cycle (maybe 2) chances are they are NOT going to support you. It all depends on how they respond to you whether or not you should continue to pursue them. Do they call YOU out of the blue? Do they email YOU out of the blue? Do they respond to your emails or phone calls? These are all signs that you can use to determine if the process is worth it. By the way, this particular client (5 Years) got an earful from me when I finally let them have it. What did I have to lose? I wasn’t curt.. but I was honest. Some people will tell you never do that, I say after a certain time… do it, here’s why… Your potential client may not be intentional, they may just be uninformed, in addition, you may learn something valuable.

Turned out the potential client told me he had been getting surveys from a competitor of mines on the most popular industry magazines and mines was never included. I thought things were great between me and this competitor and it appeared we were on good terms. We talked on the phone from time to time and talked about the ins and outs of business (this is another post I will talk about soon). Imagine my shock when I asked him why he thought that a competitor would support what I was doing and why didn’t he investigate this HIMSELF? Then I had to ask him why he would depend on one magazine to determine who he should advertise with across the board? He was dumbfounded. Let me give you a few more details. The company was an equipment company that was not used to being approached by an African American business.

The music industry, while great, has some mean lanes and people generally stay in theirs but I have never subscribed to that. That’s not to say it’s not a major problem in the industry… it is.. but I was able to have a different conversation with this client and while I still don’t have his business, we have a better understanding of each other and I got valuable information about my competition. Needless to say, my phone calls with the competitor were much shorter from that point on and I never approached him about it, I mean, for what? so he could deny it? That potential client has absolutely no reason to lie about that survey.  The client was an older white guy and he was subscribing to the 70s, 80s and 90s mentally of the industry or “The Good Ole Boy’s Club” which in today’s internet savvy industry is just foolish. The great thing about the internet and having a business on it is that race or not liking someone has a much more minor role because advertisers are looking for “eyeballs” and the consolidation of corporations over the last decade in general has taken a lot of the “game” out of advertising and marketing. This is why some of the biggest magazines and newspapers are dying off. Everything has not only become results-driven, the person buying the ads has to justify the expenditure to the corporation now. So flawed research, while not dead, has fallen ill at best.

To that end, what I am saying is, the time that you spend trying to win a client over who is an incredible long shot could better serve you by let’s say, approaching a client who DOESN’T advertise with your competitors.

Wishing you the Best in business

Kevin Ross

Let’s face it, we’re all thrilled to get new business and we try our best to satisfy our customers. After we finish giving them what they want, now we have to “beg” for what we deserve? (lol). Today, I am looking at 5 invoices that are 6 weeks or more past due.  Don’t get me wrong, I love my clients but it is hard as hell to collect. As many of you know, in the black entrepreneur game this is not uncommon.

One must wonder, do people in Accounts Payable or Vendors think we have so much money that we can afford to wait as long as possible to be paid? As we all know mortgage companies, landlords and utility company bills come ON TIME each month and they expect you to pay them. So truth be told NO, WE CAN’T WAIT. When invoices are not paid it kicks off a myriad of phone calls to those we owe money to and it seems the more we try to postphone, the more you need the money…that you have earned. I’m sure you know what I mean.

What vendors fail to realize is the checks that we get from them is no different than the checks they collect every 2 weeks like clockwork. Have you ever wondered how they would feel if they looked at their bank statement and discovered the company has not paid them? Then when they go to accounting they are told “We handed your time sheet in, it should be taken care of next week” then next week comes and they are still not paid and they go to accounting again and the woman behind the desk is irritated… now their job is at risk and they have to walk on eggshells and at the same time figure out a way to rob Peter to pay Paul until they finally get their check… this is the EXACT way it is for black entrepreneurs. As one friend pointed out, we have done the work… now pay us.

There is no reason that we should have to explain our financial situation to our clients when all we are asking is to be paid for services rendered.  Comments?

Get Paid Faster from Clients? When a client takes their time paying a small business, it creates enormous stress on the business owner who is probably already behind.

Get Paid Faster. Asking for money from slow-paying clients can be tricky. We want them to keep doing business with us but we also want to pay our bills.

We can all trade war stories on how hard it is to get paid by clients and how frustrated it makes us. I certainly understand. I also know that we, sometimes, are a part of the problem as well. Here are some tips for avoiding late pay so that you can get paid faster.

1. Set up auto payments directly to your bank account.

If it’s a major corporation, you can literally get paid faster by five times by connecting your bank account to their payment system. Ask the client if they can connect you with the proper department to set up. This usually involves filling out a couple of forms.

2. Send an invoice to the client AND the assistant.

You need to befriend the assistant but the invoice that you send to the assistant will probably have better legs than the one that you send to the contact which will probably gather dust on the desk. Get paid faster by IMMEDIATELY sending the invoice once the order is placed and VERIFY they got it.

Some clients will tell you ”Send me the invoice NOW” and we often ignore the request because we want to start working on the project or something else. Truth be told, we should adhere to their request. This means they are ready to sign it. They are telling us that because it is foremost in their minds at the time and they are ready to submit it. Once a couple of hours pass they get bombarded with other stuff.

3. Become friendly with the assistant

They take a lot of crap all day. Treat them like they are important and even send them an occasional gift (Starbucks card, Barnes and Noble card, etc). The assistant is directly connected to your contact and serves as a great backup when you don’t want to bombard your client with calls about your past-due invoices.

4. Follow up with the Accounts Payable Department the next week!

Most of us wait for 30 days or after a couple of weeks just to be told: “We have not gotten the invoice.” As you all know this is so frustrating but when you think about it, it could have been avoided if you had followed up the first week to make sure it had been handed over to Accounts Payable to get paid faster.

5. Don’t be intimidated to call the client when too much time has passed

This is often very hard, you don’t want to bug them because you want repeat business…however, you have to have faith in your abilities and realize you will get more clients but you MUST respect your business and get paid faster to run it. Your client gets paid like clockwork every 2 weeks so asking you to wait longer is already an inconvenience. More than 30 days warrants a call. You can make it matter of fact but be firm and friendly at the same time. Don”t tell them your personal business or that you are desperate, that’s none of their business.

6. Offer a discount if they can pay in advance…

Look at it like this, would you rather be paid less now or the full amount much later when all your bill collectors have added fees to your past balances and you are borrowing money from family members and friends to buy groceries and you are totally stressed out? If you get LESS> pay NOW you also have the time, energy, and motivation to move on and to garner new business stress-free!

7. Don’t Turn Away business!

Look at it like this, there are some people who can’t afford to pay your premium prices…but do you still have bills to pay? An att0rney friend of mines gave me the worst advice once. He told me to set my price and never waiver. I did for the first half of this year and I can’t tell you how many thousands of dollars I lost because I turned down independent companies etc.

Truth be told, in this economy, that extra money can go a LONG way when things get tight and your major clients are taking too long to pay you. Also, the extra money can really add up to an interest-bearing ING account, groceries, bills, insurance, gas… etc. The ADDED benefit of these smaller accounts is you can ask to be paid UPFRONT as part of the discount.

NEVER give credit to a company (small or independent) that you have never worked with. Also, get a PayPal account and a debit card with it. I can’t tell you how much I LOVE PayPal. Let me add.. don’t let independent clients take advantage of you either. That’s another coming story.

8. Don’t be afraid to solicit new business…and have a “Sale”

It really works, when your money is tight and you are having a hard time collecting.. why not offer 1/3 off or specials for new clients (no more than that) … retailers do it ALL THE TIME from Walmart to Saks, EVERYBODY has a sale when things are slow. Why not you? Make sure you make it with a time limit like for the month of June or “For the next two weeks.”

Also, make the potential client feel special. I learned a long time ago there is no need to announce it to my entire database… just follow up with those people who have expressed an interest in the past. In addition, the smaller clients want to feel special too. If everyone knows what they paid… you get the picture.

12 REASONS YOU SHOULD NEVER HIRE FRIENDS

9. Pull Away Sometimes

How many times have you driven yourself insane for a late-paying client and the check comes as soon as you stop thinking about it?

The stress of maintaining a business and collections for a black entrepreneur can be EXTREMELY overwhelming. Ironically, all of my friends are also black entrepreneurs. I didn’t intentionally seek them out we came across each other. We all agree that running your own business is a never-ending hustle… but you HAVE to give yourself a break and enjoy the fruits of your labor.

Get a massage, have a day where you treat yourself to a nice restaurant for lunch or dinner, play golf, go swimming do something that will take you out of the stress for a minute and when you come back you will feel invigorated and ready to get back into the grind. Shit, take a NAP if you have to that works too.

10. Stop Complaining…

Have you ever given any thought to the fact that EVERYONE is a potential new client in some shape, form or fashion? They may not be related in any way to your clients but they may KNOW someone who is. Moaning and groaning will not get you ANYWHERE but more stressed out. It’s OK to talk to other Entrepreneurs but CERTAINLY not clients about your business problems.

We can all trade war stories on how hard it is to get paid from clients and how frustrated it makes us. I certainly understand. I also know that we, sometimes, are a part of the problem as well. Here are some tips in avoiding late pays. Click NEXT for the next idea

.

1. Send an invoice to the client AND the assistant.

This should actually be number 2. You need to befriend the assistant but the invoice that you send to the assistant will probably have better legs than the one that you send to the contact which will probably gather dust on the desk.

2. Become friendly with the assistant

Treat them like they are important and even send them an occasional gift (Starbucks card, Barnes and Noble card etc). The assistant takes a lot of shit but is directly connected to your contact and serves as a great backup when you don’t want to bombard your client with calls about your past due invoices.

3. IMMEDIATELY send the invoice once the order is placed!

Some clients will tell you”Send me the invoice NOW” and we often ignore the request because we want to start working on the project. Truth be told, we should adhere to their request. They are telling us that because it is foremost in their minds at the time and they are ready to submit it. Once a couple of hours pass they get bombarded with other stuff.

4. Follow up with the Accounts Payable Department the next week!

Most of us wait for 30 days or after a couple of weeks just to be told “We have not gotten the invoice.” As you all know this is so frustrating but when you think about it, it could have been avoided if you had followed up the first week to make sure it had been handed over to Accounts Payable.

5. Don’t be intimidated to call the client when too much time has passed

This is often very hard, you don’t want to bug them because you want repeat business…however, you have to have faith in your abilities and realize you will get more clients but you MUST respect your business. Your client gets paid like clockwork every 2 weeks so asking you to wait longer is already an inconvenience. More than 30 days warrants a call. You can make it matter of fact but be firm and friendly at the same time. Don”t tell them your personal business or that you are desperate, that’s none of their business.

6. Offer a discount if they can pay in advance…

Look at it like this, would you rather be paid less now or the full amount much later when all your bill collectors have added fees to your past due balances and you are borrowing money from family members and friends to buy groceries and you are totally stressed out? If you get LESS> pay NOW you also have the time, energy and motivation to move on and to garner new business stress free!

7. Don’t Turn Away Business!

Look at it like this, there are some people who can’t afford to pay your premium prices…but do you still have bills to pay? An att0rney friend of mines gave me the worst advice once. He told me to set my price and never waiver. I did for the first half of this year and I can’t tell you how many thousands of dollars I lost because I turned down independent companies etc. Truth be told, in this economy, that extra money can go a LONG way when things get tight and your major clients are taking too long to pay you. Also, the extra money can really add up in an interest bearing ING account, groceries, bills, insurance, gas… etc. The ADDED benefit of these smaller accounts is you can ask to be paid UPFRONT as part of the discount. NEVER give credit to a company (small or independent) that you have never worked with. Also, get a PayPal account and a debit card with it. I can’t tell you how much I LOVE PayPal. Let me add.. don’t let independent clients take advantage of you either. That’s another coming story.

8. Don’t be afraid to solicit new business…and have a “Sale”

It really works, when your money is tight and you are having a hard time collecting.. why not offer 1/3 off or specials for new clients (no more than that) … retailers do it ALL THE TIME from Wal-mart to Saks, EVERYBODY has a sale when things are slow. Why not you? Make sure you make it with a time limit like for the month of June or “For the next two weeks.” Also, make the potential client feel special. I learned a long time ago there is no need to announce it to my entire database… just follow up with those people who have expressed an interest in the past. In addition, the smaller clients want to feel special too. If everyone knows what they paid… you get the picture.

9. Pull Away Sometimes..

The stress of maintaining a business and collections for an entrepreneur can be EXTREMELY overwhelming. Ironically, all of my friends are also entrepreneurs. I didn’t intentionally seek them out we came across each other. We all agree that running your own business is a never-ending hustle… but you HAVE to give yourself a break and enjoy the fruits of your labor. Get a massage, have a day where you treat yourself to a nice restaurant for lunch or dinner, play golf, go swimming do something that will take you out of the stress for a minute and when you come back you will feel invigorated and ready to get back into the grind. Shit, take a NAP if you have to that works too.

10. Stop Complaining…

Have you ever given any thought to the fact that EVERYONE is a potential new client in some shape, form or fashion. They may not be related in any way to your clients but they may KNOW someone who is. Moaning and groaning will not get you ANYWHERE but more stressed out. It’s OK to talk to other Entrepreneurs but CERTAINLY not clients about your business problems.

If I missed anything feel free to comment

In business, there are the clients we love and the ones we’d rather not deal with. Once you have been doing business for a while, you start to develop a 6th sense when it comes to prospects. In my business, the music industry, after so many years of doing this, there are certain people, I know to avoid right away. I want to share this information with you…

1. The Waiver Client

This is the client that wants you to jump through hoops, send them all you data and even ask you for propriety information before they spend their money to support you. NEVER give ANYONE your database. That’s the key to your business and if they have it, why do they need you? The clients that want you to PROVE yourself, especially after you are already established, are on some type of power hunt themselves. They don’t have money or they can’t afford your services but if they can make you feel the least bit inadequate or brag about “having you on their team” it apparently makes them feel better about their inabilities. They are not prepared to do business and they want everything for nothing and they will simply waste your time. It’s certainly OK to send the basic information but keep in mind they came to you for a reason. Someone told them about you or they have seen something themselves that let’s they know that you can help them. If you went to them… well you may have to deal with this situation butthere is a 25% chance they will actually do business with you. I call them the “Waivering” client because they often disappear and pop up a few months later with the same bullshit and no business for you.

2. The “Work For Free” Client

This is the client that invites you to attend their events or their business and they want to meet you at Starbucks with his or her business partners to basically… pick your brain. Hey, if you are not going to pay me to use my services then at least pay me a consultant fee… right? They have no intention of financially supporting you but dangling the carrot will, in their minds, get them the answers they can’t seem to get from more savvy, less desperate business people. I’m not knocking it, I’ve been there myself… I’m just being honest. What we think we are hiding is often BLATANTLY apparent and obvious and sometimes we ignore our instinct on these types because we need the business. Truth be told they are desperate too because they need the information. We will often give TOO much information and then we are left in the cold and they have just gotten a free education. First of all, if a client wants to pick your brain and they want you to meet them at Starbucks they are cheap. If you ever listen in to some of the business meetings or interviews that take place at Starbucks, they are often futile and ego-driven by one of the people.  This is not to say some of the meetings are not successful but let’s be realistic, if a client offered to take you to Starbucks and another offers to take you to dinner.. which one do YOU think is more serious?

3. “Hook me up, Give me a Discount on the Discount(ers)

The danger of offering a discount is there are some people who want to take further advantage of the offer. They think “Hey, if I can get it for 50% off why not 80% off. Truth be told, when we offer discounts we are often, let’s just say… “needy” but when someone tries to rip you off, you have to set your own boundaries. I have “friends” who I only hear from when they want me to run press releases on my popular industry blog (www.allradionews.com) for free. The problem is most of the time the Press Releases are on washed up artists who have no relevance in today’s industry or it’s something totally unrelated. Truth be told, my “friends” who ask me to do this will get paid for me to run it but I’m hit twice below the belt. #1 my readers are wondering why I’m running something irrelevant and unrelated and the “flow” of the blog is interrupted… #2. I’m NOT getting paid to do it. These people totally ignore how hard you work to establish your business as their concerns are only for themselves and paying their rent… that’s fine.. question is… who is going to pay yours?  I don’t reply to those requests anymore but if it’s something that you feel may help get your business rise to the next level by all means do it… JUST KNOW they will KEEP coming back for discounts or FREE work and once you give it to them, they will never see the true value in what you do.

4. I Purchased one thing, Now Give me Something Else for Free(ers)

Can you tell your landlord or mortgage company, “I paid the mortgage in March, now give me April for free?” HELL NO, they will laugh in your face. Clients must pay for all services rendered.  FREE is non existent. NEVER and I mean NEVER give anything for free UNLESS it’s a major client and you give them one thing free per quarter, year etc.

5. “Let me use your services for free and see how it works then I will make my decision(ers)”

This should literally be a CRIME and if you are STUPID enough to do it YOU should be arrested. I am willing to guarantee you that even if they get a TON of business after you do it for them for free they will STILL either going to ask for more free time or tell you it didn’t work.

In all these situations there is simply one thing that you can say to SHUT THEM DOWN. Here is a million dollar piece of advice for FREE… Ask them during the FIRST conversation….”Do you have available budget…NOW?” Most of the people above will be taken aback by the question and say things like “I’m waiting on an approval” or “I’m getting my team together” or “I’m writing a proposal to get funding.” That’s your cue to tell them… “Well, give me a call back when you have budget available and let’s talk then. Have a nice day! There is NOTHING wrong with that. Don’t waste your time dealing with these types and always value what you do.

Kevin Ross

www.biztipper.com

One of my greatest pet peeves is people who waste my time. This is why I am not good at calling any type of customer service. Pushing buttons and a robot trying to guess what I’m calling for and asking me for information is an insult to me and a waste of my time when I need to talk to a live person.. unfortunately, there are would-be clients who will waste your time too. Here are a few tips to help them get lost quick.

1. CASH UP FRONT…

Make this clear to the client. Once they agree to it DO NOT WAIVER… no matter how bad you need the money. Make it clear to the client that nothing can be done until the money is received and that means NOTHING folks. For me and my business I have to put together animated ads and it can take me anywhere from 1 to 2 hours to do these ads. If a client doesn’t come through I get pissed when I have done this much work. It’s better to not havedone anything and get screwed then it is to do 75% of the job and get screwed.

2. Create a buffer. Tell your clients you have to outsource a part of the job and that you have to pay someone else.

The client is less likely to take advantage or back out if they think that in order for you to do their job YOU have to pay someone else. Sorry, but they potential client doesn’t give a damn about you and you have to take that into consideration (laugh). So don’t put a DROP of work in until you get your money. Independent clients have a way of waivering (unlike major corporations) who usually are very good about seeing the purchase through.

3. Use your instinct…

Usually you just get a feeling on who is serious and who is full of shit when it comes to buying your product. I don’t know why but some people just seem to want to waste your time, for whatever reason. As I stated in another article.. you can shut all this down very quickly by asking one question “Do You Have Available Budget NOW!” If you get any other answer but “yes” move on.

Discount Terms? Know the Differences

When it comes to Discount Terms you must always make it work to your advantage. One of my greatest pet peeves is people who waste my time. This is why I am not good at calling any type of customer service. Pushing buttons and a robot trying to guess what I’m calling for and asking me for information is an insult to me and a waste of my time when I need to talk to a live person.. unfortunately, there are would-be clients who will waste your time too. Here are a few tips to help them get lost quick.

1. CASH UP FRONT…

Make this clear to the client. Once they agree to it DO NOT WAIVER… no matter how bad you need the money. Make it clear to the client that nothing can be done until the money is received and that means NOTHING folks. For me and my business, I have to put together animated ads and it can take me anywhere from 1 to 2 hours to do these ads. If a client doesn’t come through I get pissed when I have done this much work. It’s better to not have done anything and get screwed then it is to do 75% of the job and get screwed.

2. Create a buffer. Tell your clients you have to outsource a part of the job and that you have to pay someone else.

The client is less likely to take advantage or back out if they think that in order for you to do their job YOU have to pay someone else. Sorry, but the potential client doesn’t give a damn about you and you have to take that into consideration (laugh). So don’t put a DROP of work in until you get your money. Independent clients have a way of waiver (unlike major corporations) who usually are very good about seeing the purchase through.

10 WAYS TO GET PAID FASTER FROM CLIENTS

3. Use your instinct…

Usually, you just get a feeling on who is serious and who is full of shit when it comes to buying your product. I don’t know why but for some people just seem to want to waste your time, for whatever reason. As I stated in another article.. you can shut all this down very quickly by asking one question “Do You Have Available Budget NOW!” If you get any other answer but “yes” move on.

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