The IEEE Consultants Network of Northern NJ

Speaker Notes from Brian R. Quentzel Thursday, May 20, 2004

Getting Paid

PREPARE, PREPARE, PREPARE

The old adage, "an ounce of prevention is worth more than a pound of cure" is only too true.

A well-drafted contract (that can usually be used over and over again) is well worth the price.

The same can define each parties rights and responsibilities for easy reference at worst.

It can help things move smoothly and provide objective milestones for receiving payment.

At best, it can save the day. Allowing one to re-coop attorneys fees

and interest against the entity and possibly a guarantor if the

relationship sours and you need to resort to litigation. Perhaps even an advance lien or security interest is applicable.

Learn As Much About the Other Side As Possible

Is it a corporation, a partnership, a LLC or a sole proprietor.How long has it been around.Get credit references and CALL each one.make copies of ALL payments that you do receive.Have you seen physical personal property or real property that is worth money.

KEEP IT UP

You have all heard the expression, "What have you done for me lately?” there are two fundamental aspects related with this.

Relationships are not forever. A relationship requires lots of maintenance regardless of how it came to be (i.e. marriage, business, etc.). The same require daily maintenance to keep them going smoothly.

The parties MUST keep open the lines of communication to deal with issues that crop up. Ignoring the problem usually allows it to get bigger - with each party taking an intractable position that does not take into account the other side's position. Even if you do not agree with the other party, he or she will at least feel as though you listened.

“Information is the equivalent of currency. Current information has no equivalent”

Information goes stale so quickly. If you are not in the know, you do not know. We MUST take regular efforts to make sure all of the above items are relevant. Did you customer just lose a recent contract? Did the principal just become sick or sell the business? Is the customer unusually slow in making a payment? Don't hesitate to ask around or look around. Do a Google search. Is the company publicly traded and/or put out press releases. Read the newspaper. Try to stay current with your contacts. (email is great to accomplish this). The same has the added benefit to the extent that a good contact moves elsewhere and remembers your qualifications when the need arises.

Do Not Procrastinate. Be Proactive.

Everybody is guilty to some extent of this problem. However, with respect to law, there is a horrible thing called the "Statute of

Limitations".

The time limit can be different - depending on the circumstances and place. For most goods, the statute is 4 years from the date

merchandise is delivered. For most services, the statute is 6 years in NJ. However, litigation involving rail services and/or goods transported by rail have a shelf-life of only 18 months. Do not wait until you learn the hard way.

If you have a problem, be proactive and set a firm date for resolution. If the matter is not resolved, do not hope that it will take care of itself or the other side will see the error of his/her ways. Seek legal advise well in advance - while memories and documents are fresh and available.

Know Your LimitationsSome people are great at some things while others are good at other things. Some people have phenomenal technical skills. Others have good communication skills. While others are good at organizational skills.

If you do not have the aptitude or the patience to be organized with respect to paperwork and/or resolve conflicts, you will need to hire someone who can accomplish these tasks. Speaking from personal experience, My wife is a phenomenal surgeon and a great mother. However, she can not resolve conflicts and is disorganized with respect to any financial matters. As a result, I handle the conflicts and financial matters.

Be objective about your skill set. Supplement your skills with lectures and/or self-help books. Know when you need help (usually if you have to ask yourself the question, you need help).

A job worth doing is a job worth getting paid for.

Remember, that it is ultimately all about business. Experience, recognition and self-satisfaction are good; however, they will not pay the bills. Do not feel guilty about asking for payment and do not feel that you need to discount your services to obtain payment. Make it clear from the start that you will be billing regularly for your services.

Do EVERYTHING in your power to stick to a regular billing schedule. Do not wait until the job is done (since that may be too late). By that time, a conflict may have arisen. Or, you may have accumulated too much time for the customer to pay at that time. If you finish the job, you will have NO leverage left. Do not offer a substantial new discount. In this savage cut-throat business climate, there are too many cost-conscious managers who will make every effort to bolster their bottom line at your expense.

Discussion

I would encourage the group to share personal experiences to highlight each of the five major talking points.

You can all learn from past mistakes and past successes.

Brian R. Quentzel