| Mar. 06 2008 at 1:28 PM |
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Right on! I just started offering prepaid consulting for small companies that are ISO 9001 certified. As a part time Lead Auditor (with over 1000 audits under my belt) and part time consultant (35 years worth) I realized not everyone can afford on-site consulting...so I marketed Remote Consulting. I receive one day fee and answer calls, emails, revie docs, solve problems, online training,..... and deduct the time I spend from my pre-paid fee. At the end of my assignment I send a "Balance Sheet" showing the time spent and time left...I have two clients so far and am going for ten a month...Jim@JimKing.bizJim King
JimKing.Biz
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| Mar. 06 2008 at 3:02 PM |
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Although I have shipped product ordered by 'phone before receiving payment (after all, trust is the "cowboy way") I generally receive payment first when at trade shows or for sales over the internet. Even with shipping before payment I've never been skunked.
Jack Shuster
Kona Cowboy Coffee Company
Ruidoso, New Mexico
PANIOLA 100% Kona Cowboy Coffee
Miss Kitty's Cocolate-covered 100% Kona Cowboy Coffee beans
info@KonaCowboyCoffee.com
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| Mar. 06 2008 at 4:11 PM |
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One of the biggest mistakes I see startups make is tooling before they get an order. Really, the only way you know if you have a hit is the market response.
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| Mar. 06 2008 at 5:21 PM |
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Richard, Richard,
I have been accused of being blunt and too raw but I believe you have outdone me. To paraphrase:
"Someone has to owe someone else money. If I work for you for a month and then invoice you, I will be playing the banker to you. And I will have to finance you for about 45 days. But I am a small startup company and you are a larger, more established firm. That's why I ask my customers like you not to expect us to play the banker. And that's why I’m asking that you pay me one month in advance."
I don't know about Fairfax, but on the West Coast their reply with your suggested verbage might be something like, "we'll call you" (or just simply thank you and show you the door). You might consider coaching folks with something a little less obtrusive like, "We can offer you an additional discount on your order if you pay in advance. Since we are a smaller company we have to pay the bank finance charges on receivables (our operating income) such as yours. By avoiding the additional finance charges we like to pass that savings on to our customers." By taking this suggested alternative, you are perceived as being on the side of the customer as well as a good business person.
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| Mar. 06 2008 at 9:06 PM |
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Thanks for the input. I used this many times when I lived in laid back Los Angeles!
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Richard Geller, Entrepreneur
Get my 25 page free report on mortgage relief at http://www.MortgageReliefFormula.com
Or call me at 703.637.9163 ext.101
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| Mar. 06 2008 at 9:08 PM |
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Askforjim wrote: Right on! I just started offering prepaid consulting for small companies that are ISO 9001 certified. As a part time Lead Auditor (with over 1000 audits under my belt) and part time consultant (35 years worth) I realized not everyone can afford on-site consulting...so I marketed Remote Consulting. I receive one day fee and answer calls, emails, revie docs, solve problems, online training,..... and deduct the time I spend from my pre-paid fee. At the end of my assignment I send a "Balance Sheet" showing the time spent and time left...I have two clients so far and am going for ten a month...Jim@JimKing.biz
Very smart. And your relationship with your customer or client is so much better when they've paid you and the "money thing" is out of the way, isn't it? 
--Richard
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Richard Geller, Entrepreneur
Get my 25 page free report on mortgage relief at http://www.MortgageReliefFormula.com
Or call me at 703.637.9163 ext.101
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| Mar. 06 2008 at 9:09 PM |
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Mitchell wrote:
One of the biggest mistakes I see startups make is tooling before they get an order. Really, the only way you know if you have a hit is the market response.
Right, this is exactly right. Entrepeneurship is often an exercise in deliberately deluding ourselves...we need customers forking cash over to us in order to validate our beliefs.
--Richard
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Richard Geller, Entrepreneur
Get my 25 page free report on mortgage relief at http://www.MortgageReliefFormula.com
Or call me at 703.637.9163 ext.101
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| Mar. 07 2008 at 8:57 AM |
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Great article - this is the kind of funding I use - it works for me. One just has to be focused and remember that you are a business so priorities should be in order.
Take each day, mold it and make it yours.......
http://www.solutionshealthnwellness.com
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