|
|  |
| |
|
| | The Minding Your Own Business Network is not currently active and cannot accept new posts | | Share your business mistakes and what you learned | Views: 1167 | | Jun 09, 2007 1:52 am | | Share your business mistakes and what you learned | # | 
Sharif Khan | | I thought it'd be really cool if group members could share a business mistake they made and what they learned from it so other members and business owners can avoid such pitfalls.
Here's a business mistake I made: I was contracted to do professional business writing for a corporation and was used to getting paid every two weeks. But one day I got a bounced check. Their accountant re-assured me I'd get paid so I continued with the writing project.
BIG MISTAKE! Soon I was in the hole for over $3000 and I never got paid even after I took them to small claims court and won.
Here's what I learned: ask for a monthly retainer for ongoing projects, half upfront, half on completion for small projects, and at least 1/3 upfront, 1/3 at midpoint, and 1/3 on completion for large projects. Stop all work if you get a bounced check or non-payment. Try to get paid first before you deliver the last installment of work. Clarify everything in writing. Keep a business log or journal.
Sharif Khan
Business Writer, Communications Specialist
Author of Leadership Bestseller, “Psychology of the Hero Soul”
Blog: www.sharifkhan.blogspot.com
“Sharif knows how to write clear and concise copy for business. He is quick, to the point, and a pleasure to work with.”
- Carl Nanni, former VP, Kraft Canada
Private Reply to Sharif Khan | | Jun 09, 2007 2:33 am | | re: Share your business mistakes and what you learned | # | 
Laura Wheeler | | We also learned to put safeguards on our payment policies. And to minimize our risk by breaking contracts down into smaller bites.
We require a retainer, but we offer a money back guarantee, so the retainer is refundable if the client is not satisfied. Got a flaky client once who could not make up her mind what she wanted, and she asked for a refund after we had done a lot of work, because she had wanted to pay in a larger amount than what we usually do. We talked to her about what she really needed, and revised her contract so that it was fair to everyone, and we went forward under different terms, but I learned from that.
Now we still offer the money back guarantee, but we don't take more than a certain amount as a retainer tied to a certain amount of work, even if the client DOES want to pay ahead, because it is not worth risking that much work.
Also, because we work primarily with microbusinesses who are perpetually short of funds, we require payments up front for each segment - it acts as a retainer until the work is done, then it converts to payment. We don't start on a phase of work until we have money in hand. We started doing this after working with another flaky client who kept saying, "I'm ready to go forward, this time I really mean it!" but she'd balk each time we told her that phase 2 was done and we could not do phase 3 until we received payment for phase 2.
We'll work on any payment schedule they need, regular or irregular, and we'll never nag them to move ahead, but we have to make sure we get paid for our work if we've done it right.
Another mistake was sending out 100 targeted brochures in the mail without printing and attaching the price lists to them before we sent them (these were for a specific service). They worked much better with price lists attached. People do want to known what it is going to take, especially when you really are giving them a good deal.
Laura
Mom to Eight
Firelight Business Enterprises, Inc.
http://www.firelightwebstudio.com
http://www.westernhillsinstitute.comPrivate Reply to Laura Wheeler | | Jun 09, 2007 3:45 am | | Share your business mistakes and what you learned | # | 
Lori Jones | | I paid a thousand dollars to get my website on the front page of google search engines. What a rip off!!!!
Then I met Kyle. If you need any help optimizing email Kyle. Here's the story!
To all members, I feel I need to share this information with everyone:
Kyle is a member of our community, he showed such kindness & generousity, that I want to tell everyone about him!
My name is Lori, and I have been building a business on line for about 6 months. I had a website designed for my new business. Everything about the website was wrong, I wanted it changed but they wouldn't do a thing about it. The site didn't look professional, plus my web site wasn't' optimized, it wasn't getting any traffic at all, NONE!
Then I was introduced to Kyle at Design & Hosting Services. I mentioned that I had a web site that wasn't getting traffic, and told him I wasn't happy with the way the site had turned out. The same day I mentioned this, Kyle took a look, he told me I had quite a little mess, and said "no wonder I wasn't getting any traffic". Within hours, he fixed the website, created new text that was search engine friendly, tied the text to keywords on my web site, within 24 hours I was listed number 1 in Google search engines.
Kyle is amazing, I am forever grateful to him for his expertise and kindness.
Here is his information if anyone needs help. Need a website? Have a website but could use some changes or a new look? Starting a small business? Or maybe your band needs a promotional site? If you answered yes to any of these questions then come and see me at one of my 2 sites:
kylewatters1@hotmail.com
http://www.designandhostingservice.com http://www.designandhostinghelp.com
Below is the website Kyle fixed:
http://www.mangosteen4u.net ---------
LoriPrivate Reply to Lori Jones | | Jun 13, 2007 4:52 pm | | re: Share your business mistakes and what you learned | # | 
Colleen Connery | | Contracts, contracts, contracts.
Like you, I had been stung by not having a pre-signed agreement in hand before doing projects when I first started. I did get stung by that. But worse yet, not having a "Change Order Form" when someone changes something on you mid-stream. I used to just do endless edits and kept trying to be "nice" by telling the client this wasn't a part of the original proposal, and still got ripped off.
I have a "Change Order Form" now that all clients are required to sign that clearly states what they are asking for and the additional costs associated BEFORE work is done. I will never be in the endless loop of edits without being paid again.
And on another note, I noticed the term retainer being used. Retainers are a consistent "pre-paid" amount monthly. Typically retainers are not refundable. Our retainer policy is modeled after large marketing/advertising companies and a retainer is a guarantee of time available per month, whether the company uses it or not. There is no "roll-over" if they don't use it, it's a "use-it or lose-it" policy. It works very well for us. In all the years we've been doing this, there's never once been a request for a refund because the retainer agreement that a client signs up-front states there are no refunds, and it's an "auto-withdrawal" from either their credit card or bank account. Consider doing this because it's actually a good thing for everyone...including your client if they use you a lot.
Cheers, Colleen
President/Creative Director
CoCo & Associates, Inc.
www.cocoassociates.comPrivate Reply to Colleen Connery | | Jun 13, 2007 6:31 pm | | re: re: Share your business mistakes and what you learned | # |
Lori Jones | | Colleen,
Thanks for sharing this important information with us.
Lori
Create the wealth & success you deserve!
http://www.ljsolutionsnow.comPrivate Reply to Lori Jones | | Jun 13, 2007 11:57 pm | | re: Share your business mistakes and what you learned | # | 
Fred Keller | | Hey Lori,
Looks like Kyle did his magic! You are in the top 4.8 million sites according to ALEXA.
Way to go Kyle!
Aren't success stories great?
Keep Smiling!
Fred
It might be here: http://passion.first411.comPrivate Reply to Fred Keller | | Jun 19, 2007 9:55 pm | | Share your business mistakes and what you learned | # |
Sharif Khan | | Wow! These are great learning experiences for the whole group!
Another mistake I used to make is that if I got a decent sale near the beginning of the month, I'd slack off for the rest of the month.
What I learned the hardway is to consistantly continue one's marketing and sales efforts despite getting that one big deal...because you just never know, that deal could fall apart, the next month might be the worst month ever, or you might encounter an unexpected business loss and then have to scramble. (Trying to sell when you're desparate is NOT a good idea).
Sharif Khan
Business Writer, Author of "The Hero Soul"
http://www.sharifkhan.blogspot.com Private Reply to Sharif Khan | | |
| |
| |
