So you’ve accepted a client and everything has thus far gone well.
Then something changes; maybe a key person has been replaced or the new financial controller has implemented new payment processes that seriously jeopardise your cashflow. What do you do?
If the work itself has changed, find out why: is it a new person? A new direction for your client? If it is a new person, take the time to meet with them and find out how they will interact with your business, then recalibrate your expectations of the client’s mode of business.
If the client pulls you in a new direction, decide whether this is a move that fits with the scope of your business.
If you decide to follow, make sure you understand the implications for your business: you may need additional training or more staff, for example.
If you don’t want to move in a new direction, part ways in the most agreeable way possible. Explain to them where you see both businesses and point out that you prefer to remain where you are.
They will respect you for your insight and may continue to offer you work in your core niche. If you don’t make a clean decision, you may find yourself out of your depth and unable to cope with the new work, which will affect your ability to deliver.
If payment processes have changed out of your favour, discuss this with the financial controller as soon as possible; it may be possible to gain an exemption.
If processes have changed without warning, or perhaps illegally, make your client aware of the agreement you set at the beginning of your relationship.
If the situation doesn’t change, seek guidance from your own accountant or a creditor management agency. As a last resort, pursue legal avenues.
Lastly, if it really isn’t working out, don’t be afraid to break up with a problem client. Have the conversation with them as soon as possible and outline the reasons why you can no longer work with them.
Be diplomatic and courteous, and stick to your guns. After that, they’re someone else’s problem.
Colin Porter is managing director of CreditorWatch, an online community of thousands of businesses who share information about bad and slow payers to make better credit decisions.
