Saturday, 28 May 2011
Deanem Collections: How the Titanic is the story of most new businesse...
Deanem Collections: How the Titanic is the story of most new businesse...: "Is your company Jack or Rose? According to history when they designed the Titanic, the brief was to create the fastest and most luxurious..."
How the Titanic is the story of most new businesses.
Is your company Jack or Rose?
According to history when they designed the Titanic, the brief was to create the fastest and most luxurious liner of the day. From the end of the 19th century to the middle of the 20th century the liner that completed the fastest crossing between the Southampton & New York was awarded the coveted Blue Ribbon. Winning this coveted prize would increase the number of wealthy business people who would book passage just to cut half a day from the journey. As you can imagine the ship owners enjoyed the rise in their profits. Winning was the equivalent of winning the XFactor today. While a contestant will be crowned the winner and go on if they are lucky to enjoy chart success the real winners of XFactor as we know are ITV, Syco Records and of course Simon Cowell. As with the Blue Ribbon companies wish to be associated to the programmes success and flock to advertise their products and services to the millions who watch the programme.
Consequently The White Star Line, Titanic's owners were intent on winning the Blue Ribbon and set about finding a designer who could help them achieve their dream. They insured they had the best engines, the crew were trained to the highest standard, the 1st class passengers were provided with the best decor and furnishings, nothing was left to chance. Except according to historic records they apparently forgot to check if the watertight doors worked! This decision proved fatal when the Titanic met the iceberg. The rest as they say is history.
When we launch a business the intention is to launch the best company ever, you check the quality of the stock, spend money on marketing your company, services and products. Their business like Titanic is going to break records unfortunately, like Titanic they have a similar flaw in the blueprint. In the case of the Titanic it was those pesky watertight doors in business, it’s called poor credit control.
If you do not insure that your Terms & Conditions are fit for purpose, set up a proper credit control policy ensuring that your customers pay their invoices within the agreed terms, your business like the Titanic will sink to the bottom of the ocean. However, unlike Titanic there will be no romance about your business sinking.
A further analogy can be found in the film of Titanic and only you can decide which character your company is. You can either be like Jack, who despite being very brave & heroic ultimately ends up, like the Titanic at the bottom of the ocean. Or you can be like Rose who clings on to a piece of drift wood and was finally rescued by a passing life raft.
The bottom line is that with the correct credit control policy your company can be like Rose survive and grow to or you can chose to do nothing and ultimately be doomed like Jack.
To find out more about David or why Deanem Collections Ltd is known as “The life Raft in the sea of Debt” please visit www.deanemcollections.co.uk
Sunday, 15 May 2011
Deanem Collections: Missing vital signs
Deanem Collections: Missing vital signs: "This week I’ve been inspired by two things that happened to me, the first quite serious the second not so, just annoying. I had the pleasur..."
Missing vital signs
This week I’ve been inspired by two things that happened to me, the first quite serious the second not so, just annoying.
I had the pleasure in visiting a valued housing association client this week and met a charming lady, who for the purpose of this blog shall be known as Jane. Jane while only in her mid twenties is a very experienced collections officer and even though they have been a client for some time this was the first time we had met, we seemed to be getting on like old friends. My mistake was to forget the rules about what should and shouldn’t be discuss with a client if you don’t know each other well. As I said we seemed to be getting on really well, so much so that I said that if she was ever to leave her current employer I would want her to work for Deanem. Towards the end of our conversation, I mentioned the analogy between losing your virginity and becoming a credit controller. For those who follow my blog or who have heard me speak, will know the story. I left the meeting feeling that if I was lucky Jane could eventually come and work for Deanem Collections working on sales & collections. You can imagine my surprise when later I received a phone call from one of her bosses telling me that they felt that I had acted inappropriately towards Jane and that they were very unhappy. My only defence was to offer an immediate apology and explain that had I realised that the story was inappropriate I would not have said it. Obviously in this case I didn't read or see the signs that said I was crossing a line between acceptable and unacceptable behaviour and can only hope that this episode will not sour relations between my company and client.
The second incident happened this morning, I was taking part in a 40 mile charity bike ride for The North London Hospice. The Hospice, like all hospices it provides vital care and relief to both those who are suffering with terminal illness and their family. The event was well organised and attended with 190 cyclists taking part. The problem came after about 5 miles when there was some confusion as to the direction signs (or lack of) and you had the sight of a group of cyclists stopping to consult a map before moving on. At around 12 miles there was a fork in the road and the direction marker indicated that the riders should take the right fork. Unfortunately, this was a sign for an earlier ride which had not been taken down! This road took the riders up and down a testing course for a further 10 miles when once again all were seemingly lost. It was only when we checked the map that it dawned on us that the road we had been on ran parallel to the road we should have been on. By this stage, due to a sore back I decided to follow the map and head back to the start. What should have been fairly simple but challenging ride was made harder by the fact that a large number of the direction signs had been removed during the night. Once again by not seeing the correct signs I took a wrong turning and spoiled what should have been a fabulous and testing ride.
I can hear you asking what has the above got to do with credit control and debt collection, the answer is, it is about seeing and understanding signs. The skill of a credit controller or debt collector is the abilty to be able to srecognise the signs of when a debtor is or isn't telling the truth. Over the years I have lost count of the number of times a debtor will say “They dispute the debt”. When questioned, the dispute generally is down to either the over selling and under performing by our client or the debtor not having the money to pay what they owe. Occasionally, the debtor will have a genuine reason for not paying due to shoddy workmanship etc. I’m very fortunate in that my collectors are very experienced men & women whose life & business experience enables them to quickly work out if the debtor has a genuine grievance or just playing for time.
As a tip, if your debtor ever says they are not paying an invoice, ask them why? If it’s a genuine reason for say for poor quality goods or poor service and you agree with their assessment, offer them a discount or reduce the price on their next order. I’ve found that if the grievance is genuine and you can address it, not only will the client appreciate the gesture they are more likely to reorder from you. However if the debtor is playing for time you are left with only two options, you can either continue to press them to pay or pass the account to a third party debt collection agency, such as Deanem Collections. The agency should be able collect the debt without upsetting the relationship you would like to enjoy with your client.
If you would like to know more about the work of David or Deanem Collections please visit our website or if you prefer send an email to david@deanemcollections.co.uk
I had the pleasure in visiting a valued housing association client this week and met a charming lady, who for the purpose of this blog shall be known as Jane. Jane while only in her mid twenties is a very experienced collections officer and even though they have been a client for some time this was the first time we had met, we seemed to be getting on like old friends. My mistake was to forget the rules about what should and shouldn’t be discuss with a client if you don’t know each other well. As I said we seemed to be getting on really well, so much so that I said that if she was ever to leave her current employer I would want her to work for Deanem. Towards the end of our conversation, I mentioned the analogy between losing your virginity and becoming a credit controller. For those who follow my blog or who have heard me speak, will know the story. I left the meeting feeling that if I was lucky Jane could eventually come and work for Deanem Collections working on sales & collections. You can imagine my surprise when later I received a phone call from one of her bosses telling me that they felt that I had acted inappropriately towards Jane and that they were very unhappy. My only defence was to offer an immediate apology and explain that had I realised that the story was inappropriate I would not have said it. Obviously in this case I didn't read or see the signs that said I was crossing a line between acceptable and unacceptable behaviour and can only hope that this episode will not sour relations between my company and client.
The second incident happened this morning, I was taking part in a 40 mile charity bike ride for The North London Hospice. The Hospice, like all hospices it provides vital care and relief to both those who are suffering with terminal illness and their family. The event was well organised and attended with 190 cyclists taking part. The problem came after about 5 miles when there was some confusion as to the direction signs (or lack of) and you had the sight of a group of cyclists stopping to consult a map before moving on. At around 12 miles there was a fork in the road and the direction marker indicated that the riders should take the right fork. Unfortunately, this was a sign for an earlier ride which had not been taken down! This road took the riders up and down a testing course for a further 10 miles when once again all were seemingly lost. It was only when we checked the map that it dawned on us that the road we had been on ran parallel to the road we should have been on. By this stage, due to a sore back I decided to follow the map and head back to the start. What should have been fairly simple but challenging ride was made harder by the fact that a large number of the direction signs had been removed during the night. Once again by not seeing the correct signs I took a wrong turning and spoiled what should have been a fabulous and testing ride.
I can hear you asking what has the above got to do with credit control and debt collection, the answer is, it is about seeing and understanding signs. The skill of a credit controller or debt collector is the abilty to be able to srecognise the signs of when a debtor is or isn't telling the truth. Over the years I have lost count of the number of times a debtor will say “They dispute the debt”. When questioned, the dispute generally is down to either the over selling and under performing by our client or the debtor not having the money to pay what they owe. Occasionally, the debtor will have a genuine reason for not paying due to shoddy workmanship etc. I’m very fortunate in that my collectors are very experienced men & women whose life & business experience enables them to quickly work out if the debtor has a genuine grievance or just playing for time.
As a tip, if your debtor ever says they are not paying an invoice, ask them why? If it’s a genuine reason for say for poor quality goods or poor service and you agree with their assessment, offer them a discount or reduce the price on their next order. I’ve found that if the grievance is genuine and you can address it, not only will the client appreciate the gesture they are more likely to reorder from you. However if the debtor is playing for time you are left with only two options, you can either continue to press them to pay or pass the account to a third party debt collection agency, such as Deanem Collections. The agency should be able collect the debt without upsetting the relationship you would like to enjoy with your client.
If you would like to know more about the work of David or Deanem Collections please visit our website or if you prefer send an email to david@deanemcollections.co.uk
Monday, 2 May 2011
Deanem Collections: Osama Bin Laden and debtors
Deanem Collections: Osama Bin Laden and debtors: "This week I’ve been inspired by the events unfolding in Pakistan & the USA. According to the news the Americans raided Bin Laden’s’ hideout ..."
Osama Bin Laden and debtors
This week I’ve been inspired by the events unfolding in Pakistan & the USA. According to the news the Americans raided Bin Laden’s’ hideout in Pakistan and in the ensuing fire fight Bin Laden was shot and killed. According to the news reports there is jubilation in both New York & Washington and you can’t blame the American’s in taking great pleasure in the demise of the man who was responsible for their blackest day since Pearl Harbour.
Unfortunately, what many forget is that while Bin Laden has been number 1 on the most wanted list ever since 9/11 there are thousands more terrorists ready to take his place and as such the death of this man will not make the world a safer place.
In some small way these events are mirrored in everyday business life and while the majority of us do not deal with homicidal religious fanatics on a day to day basis, we do deal with people who if you are not vigilant will destroy your business.
I know this sounds a bit of an exaggeration but I feel that people who do not settle their accounts when they are due, are as bad if not worse that a religious fanatic. A religious fanatic will undertake their wanton destruction due to their strongly held but misguided religious beliefs. However, there are a small percentage of companies who take great pleasure in not paying their bills and will not lose any sleep if their supplier goes bust.
I would like to remind anyone who is reading this to be extra vigilant by making sure you carry out due diligence when dealing with new and existing customers. Fir those who are unaware of them, please find below a simple check list:
Terms & Conditions:
Are your Terms & Conditions adequate? Who designed them? What are your settlement terms: 7, 14, 21, 30 days?
Can you claim interest on overdue accounts? Can you charge your late payer for costs incurred in the collection of the overdue invoice?
Are you protected against damage caused in the fulfilment of your duties?
Are you protected if the customer interferes with your ability to carry out your work?
If the answer to these simple questions is NO, contact a specialist agency.
Account opening forms:
Do you know who is legally responsible for settling your invoice?
Is your client a sole trader, a partnership, a single Ltd company or part of a group? Where should you send your invoice?
If you don’t have a working account opening form, contact a specialist agency.
Authorisation & Satisfaction forms:
If you are providing an on site service, such as plumbing, electrical, equipment maintenance ask that the client sign an Authorisation form before starting work and then that they are happy with the service after the work is carried out.
The form should be on your company letterhead and should have two boxes.
Box 1) Should have spaces for the customer to write his/her name, property address, and authority to contract your services. There should be a space for the customer to sign that they agree for the work to be carried out as per your terms & conditions.
Box 2) Should have spaces for the customer to again write his/her name and that the work was carried out to their satisfaction or dissatisfaction. In addition, there should be a space for additional comments, good or bad.
If you don’t have an Authorisation & Satisfaction form. Contact a specialist agency.
If you would like to know more about David or Deanem Collections Ltd please visit our website www.deanemcollections.co.uk or if you are in London on May 5th David will be holding a workshop at the London Business Growth Show being held at the MWB Building 55 Old Broad St London EC2M 1RX.
Unfortunately, what many forget is that while Bin Laden has been number 1 on the most wanted list ever since 9/11 there are thousands more terrorists ready to take his place and as such the death of this man will not make the world a safer place.
In some small way these events are mirrored in everyday business life and while the majority of us do not deal with homicidal religious fanatics on a day to day basis, we do deal with people who if you are not vigilant will destroy your business.
I know this sounds a bit of an exaggeration but I feel that people who do not settle their accounts when they are due, are as bad if not worse that a religious fanatic. A religious fanatic will undertake their wanton destruction due to their strongly held but misguided religious beliefs. However, there are a small percentage of companies who take great pleasure in not paying their bills and will not lose any sleep if their supplier goes bust.
I would like to remind anyone who is reading this to be extra vigilant by making sure you carry out due diligence when dealing with new and existing customers. Fir those who are unaware of them, please find below a simple check list:
Terms & Conditions:
Are your Terms & Conditions adequate? Who designed them? What are your settlement terms: 7, 14, 21, 30 days?
Can you claim interest on overdue accounts? Can you charge your late payer for costs incurred in the collection of the overdue invoice?
Are you protected against damage caused in the fulfilment of your duties?
Are you protected if the customer interferes with your ability to carry out your work?
If the answer to these simple questions is NO, contact a specialist agency.
Account opening forms:
Do you know who is legally responsible for settling your invoice?
Is your client a sole trader, a partnership, a single Ltd company or part of a group? Where should you send your invoice?
If you don’t have a working account opening form, contact a specialist agency.
Authorisation & Satisfaction forms:
If you are providing an on site service, such as plumbing, electrical, equipment maintenance ask that the client sign an Authorisation form before starting work and then that they are happy with the service after the work is carried out.
The form should be on your company letterhead and should have two boxes.
Box 1) Should have spaces for the customer to write his/her name, property address, and authority to contract your services. There should be a space for the customer to sign that they agree for the work to be carried out as per your terms & conditions.
Box 2) Should have spaces for the customer to again write his/her name and that the work was carried out to their satisfaction or dissatisfaction. In addition, there should be a space for additional comments, good or bad.
If you don’t have an Authorisation & Satisfaction form. Contact a specialist agency.
If you would like to know more about David or Deanem Collections Ltd please visit our website www.deanemcollections.co.uk or if you are in London on May 5th David will be holding a workshop at the London Business Growth Show being held at the MWB Building 55 Old Broad St London EC2M 1RX.
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