The graveyard is filled with businesses that had cash flow problems.
If you’d like to avoid ending up with the same fate, make sure you’re not committing this classic consulting sin.
The reason most consultants don’t do this is because they are too scared to ask their clients.
Consultants ask me all the time, “my client was supposed to pay me a week ago, and they haven’t what should I do?”
That “one week” becomes two, sometimes three, six or more…
There’s a simple way to make sure this doesn’t happen to you – get paid up front.
That’s right; tell your client that you take payment at the outset of the project.
If you can’t collect 100% of the payment at the start, take no less than 50% (or 1/3 paid out evenly over the project at minimum).
The idea here is that you shouldn’t be doing work unless you’ve been paid for it. Continue Reading