Small business owner here as well. I run a family business -- we sell international flags, and make custom banners and flags, displays, etc. It's a great business because we get to make stuff. There are probably easier ways to make a living, but it's always a thrill to see our work out in the world. We do work for television and movies as well, and that can be really cool. We do work for a lot of NYC-based shows, like 'Person of Interest' and 'Blue Bloods'. Basically, you know the vertical flag sets in judge's and lawyer's offices you see in 'Law & Order' and other 'Cop Drama'-style shows? Sold by me.
All the stories I'm hearing about being in business and getting screwed -- pretty much... yeah, that's business sometimes. The simple truth is that all business is based upon trust. We had a client for whom we did a lot of work, and then complained that the graphics we made were unusable. So we show up in court with photos of the client's event -- with our signage all over, looking great. We weren't the only vendors he screwed over, but we showed up in court, and we won. The sheriff (yeah, they have sheriffs in NYC) was set to seize some of his physical assets in order to pay us, but the court then rescinded that order on the grounds that it would ruin the guy even further. So no, there's no real way to get your money.
Since so much of our work is custom, we customarily take a deposit for people we have not yet worked alongside, and allow others that we have a relationship with place orders without a deposit. The actual rate of bad debt is relatively low, and a lot of clients with problems paying are (shocker!) people starting up small businesses. So if they cannot pay in full, we ask them to pay what they can, when they can. And instead of being paid in a month, we're paid in a year.
The worst people to work for (sorry about your toes, some of you) are government institutions. You can't imagine how many times they give us a bid request that is 200+ pages, and it's for a very small order. And to read their contract would make you want to have nothing to do with them. I had one bid contract declaring that the custom flags I would (possibly) make 'shall be impervious to weather.' I love the use of the word 'shall' -- get Charlton Heston on the phone, there are a few more Commandments to add! Try pointing out to them that nothing (not mountains, shorelines, etc.) are 'impervious' to weather. And if they're not happy, you, then vendor are solely responsible for everything. They have clauses in the contracts that state that if they are not happy with your product they have the right to buy from another vendor (at a super high cost) and you will be responsible for the expense!
And then they ask if you're a black, female oboe-player from a disadvantaged family from Kenya. (I'm not.)
But if I were I am notified that I can raise my bid by 30% and still be on par with other bidders. Could that be more nakedly racist and sexist?
I'm not joking, people. So what do people do? They hire a black female oboe player and that person acts as their 'proxy' to win the bid, they then pay that proxy off, and complete the job. Only government could engineer such evil.
Working for clients, I was always one step removed and it was frustrating when their business goals, assuming they had some, were in conflict with my recommendations.
Yeah, we get some clients who ignore our every recommendation and then when the job goes south we are expected to take the economic hit. It seems to me that every business is becoming a service business, to some degree. It would be nice to simply make a product some days, and let people take it or leave it, but service seems to be the single best way to distinguish oneself.
- If it's a website or bigger project pay half upfront (when you start) and at the end the the other 50% (you don't start unless you get 50%).
No refunds on work performed (you have to keep the customer informed). They don't get the site unless they are happy, and pay the 50% at the end.
Yeah, if clients have little to no skin in the game, they're more apt to just walk away.
You live, you learn. I had a big client walk out on a $20k bill. I busted my ass for a whole month from morning to evening, for nothing. Now, I don't deal with any shady customers, and I actually refuse business that I feel is risky. I also collect payment up front for big projects. I could have gone the lawyer route, but it would have been time and effort that I could use towards other customers. I also could have remoted in, and shut **** down until I got paid, but I have too much integrity for that. Even if the owner is a douche bag, I wouldn't want to negatively impact their employees.
Exactly right on lawyers. Sorry if this offends some people, but the only people who win lawsuits are lawyers. You spend so much time and energy and it drags on forever and nothing really happens. You don't get your money, generally. The worst I ever had to do was hold onto someone's sign. They had not yet paid for it, and then they had the nerve to be upset when it was damaged in the Sandy Superstorm Hurricane. So we repaired it for free -- and then held it until they paid for it.
These sorts of stories are why I have so much respect for capitalism and entrepeneurs -- they make the world work. I was once at a BBQ with friends, and they started talking about their bosses (not knowing I'm my own boss) and they all said, "It's amazing... my boss is so stupid!" ... "I know -- my boss is an
idiot!" On and on this went, then they looked at me and I said, "Isn't it incredible. The dumbest guy somehow manages to end up as the boss; over and over! " They received that statement without any irony whatsoever.
Haters Gonna Hate. (that's as 'street' as I get)
