Venture capitalist firm Kleiner Perkins’ John Doerr listed top things that start-up companies should be doing. It would be helpful not only for start-up companies, but for any business. It may be useful for individuals also to some extent. Check out John Doerr’s to-do list here.
Related Link: Cash panic sweeping VC industry
It’s essential to spot problem accounts early especially in this time of recession. Global financial meltdown is burning many companies. Everyday we hear of some company shutting down the operations. It’s important not to get caught with lot of unpaid invoices. Do what you can today to protect yourself and your money.
You don’t want to crack down on a good customer too hard too soon. At the same time, you don’t want to “taken for granted” by a client who has become unable or unwilling to pay. What you need is an early warning system to detect a credit problem in the making so that you can stop the losses as soon as you can.
Here are some of the telltale signs that might come from problem clients:
If you see any of these problems, it’s time to take action. The “action” really depends on your specific situation. If you have long-term relationship with the client, you may want to help him out. If the client is arrogant or in a really bad situation, you may want to stop doing business with him and take the loss and move on.
Why the clients get into the trouble and become a failure? Rick Telberg wrote a good article about this. It’s normally the pride that prevents the client accepting the failure before it’s too late. You just need to make sure that their pride is not going to be your loss.
