Monday, September 3, 2007

Flexibility is high priced

You always want to be flexible. You always want to do what's best for your client. The problem with this, is that the more flexible you are, the more the client will treat you badly. This is especially true to those in the services industry. You agree to provide certain services, the paperwork is stuck somewhere, the client implores you to go ahead and get started.. you do, because you care for your client.

Wrong!

Never, ever, deliver a service without all the formalities being done. You will get complaints and you will be called names. That's okay. Resist the temptation. It is easy to say: they are X Inc., of course they will honor their agreement, verbal as it may be. Absolutely not. The bigger the organization, the less likely you would get paid for your work if the formalities are not taken care of first.

So, my fellow entrepreneurs, get them to sign the dotted line. Make it very clear that if they don't sign, you don't deliver. Period. It has been my (bitter) experience, that clients simply ignore all the emails and telephone conversations and maintain that they have not entered into a contractual agreement and as such are not willing to honor their financial responsibilities to you.

Once they are a client, be flexible. Until then, stick to your guns.

4 comments:

s101 said...

very good points - especially in this part of the world (as opposed to my experience in North America and Western Europe), I have noticed that verbal agreements aren't held with the same/similar regard as written agreements.

Although I do wonder how much legal standing one has even with a contract in hand, in the UAE (especially depending on the other party's nationality)?

Dubai Entrepreneur said...

It's not like that. Verbal agreements are normally honored among smaller companies. The problem is with the larger organizations where the left hand doesn't know what the right hand is up to.

So you have an executive from some department ordering services. You say, ooh.. I want to work with X company. You go ahead and process it. The exec realizes that his bosses won't approve it. He says nothing to you. You continue to provide your services until the accounts become very overdue. You start on your collection hunt to later find out that they do not recognize your very existence.

s101 said...

i think the siloed mentality in large corporations is a phenonomenon i've seen in many parts of the world.

i*maginate said...

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I think your blog is very valuable: keep posting!