Dispose Of Delinquents And Deadbeats
Delinquent clients are like an acid drip: They eat away at your profit margin and corrode your cash flow. And once a client moves from late-paying to delinquent, it’s usually too late to expect a quick and happy ending.
Just as in sports (and war), “the best defense is a good offense.” Avoid taking on delinquent clients in the first place. Here’s how:
Step One: Choose your target market wisely. You can’t be all things to all people. Choose a target market that makes sense, given your expertise and capacity, and start there. Once you’ve established a strong foothold, then consider going beyond.
Companies that take whatever walks through the door routinely find that those clients:
1. Don’t appreciate their work, and
2. Can’t or won’t pay full price for what they received.Plus, you may spend inordinate (and unprofitable) amounts of time trying to service them.
Step Two: “Profile” your potential clients. A client that fits your target market won’t necessarily fit your ideal client’s profile, which should include more detailed pre-screening criteria for clients. For example, after I got burned too often by business clients (my target market), I established a new policy: I get money up front. Anyone who balks doesn’t fit my profile.
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