TROUBLE

You want to have the best quality customer you can find, and that means clients that always pay what they owe when it is due.

There are early warning signs of a company in trouble and, if you heed them, you’ll know when to require ‘cash and carry’ from them.

Some signs include:

• High turnover, especially on the sales team. If your client loses 50% of their employees in less than 3 months, watch out.

• High attrition of client’s customer base. If THEIR customers are turning elsewhere for solutions, that’s a real problem.

• Significant communication problems. If they forget their promises, or recall different conversations, be cautious.

• Recurrent accounting errors. If payments are missed because of an “error in accounting”, those “errors” will likely continue.

if you see any of the signs above, be very cautious about engaging that prospect.