Blogging is Like Exercising

It's shocking how fast a month or two can pass. I started this blog with every intention of recording daily things I've thought about or learned about, but I got distracted by my daily workload and the demands of my small business.

Important demands, of course. I hired an important new employee (welcome, Wendy!), refined a bunch of business processes, and hired a couple of experts to help improve parts of my business that need improving.

It seems like that all happened within a couple of weeks' time, but dates on this website remind me that it took much longer. I suppose blogging is much like exercising, though. We start with big plans and lots of enthusiasm. But life happens, and a day's break may turn into a week or even a month. The important thing, I think, is to get back to it. To avoid spending a lot of time worrying about the past and to focus on the present.

Today, I updated my blog. I'm back at it, and it feels good.

Posted on May 15, 2008 at 08:15AM by Registered CommenterMatt Hyatt | CommentsPost a Comment

10 Big Tips to Keep Your Sanity and Get Paid

Unless you run a cash-only business or started less than 10 minutes ago, chances are that you’ve experienced a past due customer. Here are ten big tips to keep your sanity and make sure you get paid:

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Include payment terms in your proposal.

The collections process begins with your proposal. That's your opportunity to set clear payment expectations with your client. Include a short "Terms" section near the bottom of every proposal that explains when and how you expect to be paid.

Ask to be paid in advance.

Unless you're running a bank, there's no reason you shouldn't be paid in advance - especially if you must cover hard costs to fulfill an order. Don't be afraid to ask for all or part of your payment in advance. Most buyers are happy to oblige.

Set your terms to meet your needs.

There's no law that says you must extend Net 30 terms to your customers. If you need to be paid within 5, 10, or 20 days to be comfortable, then by all means, set your terms accordingly. It may sound harsh, but customers that can't meet your payment schedule simply aren't a good fit for your company. After all, you won't be doing anyone any good if you don't have the money to keep your business afloat.

Send invoices immediately.

Sending your invoice immediately shows that you're serious about being paid on time. It also ensures that your customer remembers the product or work being invoiced.

Contact your customer immediately after a missed due date.

Don't wait until an invoice is 30 days past due before beginning a collections process. Instead, contact your customer right away when an expected payment is missed. A phone call is most effective. Be friendly, but firm.

Sample script:

"Hi, I'm calling because we didn't receive an expected payment by the due date and I wanted to make sure everything is ok. Can you let me know where we stand on invoice XXX, please?"

Document each collection attempt.

It's critical that you keep a record of each contact you make while attempting to collect a debt. Record the date, time, and the name of the person you contacted, even if you didn't get an answer. Keep copies of any emails or letters you send, and make note of any information your customer may give you. Excellent record keeping helps you keep your facts straight, and it will definitely help you if you ever have to pursue payment in court.

Follow a documented series of escalation points.

Know in advance what you'll do if an invoice becomes past due by a certain number of days. For example, you may want to call  your customer at 1, 15, and 30 days past due, then send a series of letters at 45, 60, and 75 days. Whatever the case, decide in advance what you'll do each time a new threshold is reached, then follow the plan religiously.

Email a confirmation of each verbal promise for payment.

When a past due customer makes a promise to pay, an emailed recap of the conversation helps formalize the commitment.

Sample script:

"Hi. Thank you for taking my call today. I just wanted to send this quick email to confirm that you'll be sending $_______ on _______ to pay for invoice _______. I appreciate your commitment and thank you in advance for your prompt payment."

Build and refine your tool chest.

As you begin using your collections process, you'll learn what works in your specific business and what doesn't. Don't worry about making it perfect (it will never be perfect). Just document a simple process and see it through. As you discover tactics that work or don't work, make adjustments to the process and try it again. Soon, you'll have a process that's excellent, and that will be enough.

Know when to let it go.

At some point, chasing a delinquent payment becomes counter-productive. Don't let a delinquency rule your emotions or your calendar. Simply decide in advance what you'll do if an invoice becomes delinquent, then follow your process. For example, you may decide that all invoices under $1000 will be turned over to a collections agency and all invoices over $1000 will be turned over to your attorney at 90 days past due. Once your pre-defined threshold has been reached, simply turn it over and let it go. You'll be happier and will probably live longer. Odds are that you can make more money pursuing new opportunities anyway.

Posted on Mar 29, 2008 at 03:17PM by Registered CommenterMatt Hyatt in | CommentsPost a Comment | References5 References

Dress Like a Boss

I was inspired by a blog post I ran across over at LifeClever recently, which describes how to dress like Apple pitchman Justin Long. I love the idea of sharing important wardrobe hints and tips, but as a business owner, I'm afraid I can't get away with the casual style popularized by Apple television ads. For some balance, I thought we'd take look at another popular TV icon: business leader Michael Scott of NBC's hit documentary The Office.

When you're the boss, as Michael Scott himself might say, it's important that you appear more important than your team. Here's how to capture the look.

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Clearly, Michael Scott is all business. His look can easily be summarized as:

  • Smart, but approachable.
  • All business, but not preppy.
  • A simple color palette of charcoals, subtle blues, and slates.
  • Minimal, with just the right amount of executive bling.

If you truly want to look like the World's Greatest Boss, here's how and where to buy the look.

mscott_suit.jpgStart with the basics. The Charcoal Power Suit is the foundation for the boss's closet arsenal.

Docker's 2-button Suit Jacket and Coordinated Dress Pants at Sears
$250 (both)

 

 

mscott_shirt_tie.jpgAdd a nice shirt and a conservative tie. Splurge on the tie and get one that doesn't come in the same package as the shirt.

Docker's 100% Cotton Dress Shirt at Sears
$38

Arrow Diamond Tie at Kohl's
$30

 

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When you're leading people, accessories are important. A good belt and a classic watch tell people that you've "arrived."

Stafford Double Stitch Belt at JC Penney
$20

Timex Perpetual Calendar Watch at Kohl's
$75

 

 

To finish your boss makeover, there are a few more things to do:

  • Stand with your arms crossed and, whenever possible, from a higher vantage point than your team. This shows authority.
  • Unless you're a girl, avoid jewlery. Except watches.
  • Keep the hair on your head neatly groomed. Avoid facial hair.
  • Have the nicest office. Better yet, have the only office.
  • Smirk.
Posted on Mar 26, 2008 at 12:50AM by Registered CommenterMatt Hyatt in | CommentsPost a Comment

How Aware Are You?

Test your awareness with this 60 second video.

Reminds you of a typical day at work, doesn't it? We're often so focused on the dozens of things we need to get done each day that we run the risk of missing the real point.

Posted on Mar 23, 2008 at 07:47AM by Registered CommenterMatt Hyatt | CommentsPost a Comment

Low Budget Marketing on a "Presidential" Scale

I recently had the pleasure of hearing IPED Channel Intelligence Director Ryan Morris speak on the topic of marketing. Ryan is a fast-moving, high-energy speaker with a ton of great marketing advice. One of the topics that impacted me the most was his list of “5 Marketing Musts”:

  1. Must be customer-focused. (It should be about them, not us!)
  2. Must be measurable. (If you can’t count it, don’t do it!)
  3. Must be targeted. (Be specific - spend your limited marketing funds on the customers you really want.)
  4. Must be repeated. (If you can only afford to do it once, don’t do it at all!)
  5. Must be integrated. (Deliver one consistent message across multiple diverse touch points.)

When was the last time you delivered a multi-touch, customer-focused marketing campaign to a targeted group of perfect prospects utilizing multiple media types with measurable results?

Never, you say?

If it makes you feel any better, I haven’t either. But I have thought a lot about ways to accomplish all 5 “musts” without spending a lot of money. The Internet is the key. For some perspective, let’s take a look at a test case of folks that need to make a bunch of “sales” in a hurry without spending a lot of money. Yes, let’s take a look at the U.S. presidential candidates.

Ok, I know what you’re thinking. Presidential candidates have a TON of money to spend, right? Not really. If you think about it, you’ll realize that the amount that they have to spend per prospect, or vote, is quite low. After all, their “perfect customers” are, um, Americans. All 300 million of us. According to the latest campaign spending figures, that means that the top four candidates still running (Clinton, McCain, Obama, and Paul), have so far only spent between 10 cents (Paul) and 52 cents (Clinton) per prospect. Compared to what you can afford to spend on a perfect prospect, the presidential candidates are working at a serious disadvantage!

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As I mentioned, the Internet is the key. Thanks to social networks like Facebook, LinkedInFlickr and YouTube, it’s surprisingly easy to hit all 5 of Ryan Morris’ “Marketing Musts”. All that’s required is a strong message, some creative thinking, and the patience to learn how to use a handful of your favorite social networking sites. With a little effort, in other words, you can have the marketing power of a presidential candidate at a fraction of the price!

Posted on Mar 21, 2008 at 05:49PM by Registered CommenterMatt Hyatt in | Comments2 Comments
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