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IN DEPTH - Guidelines for Entrepreneurs Explained, part 2 - Stamping Is My Business!

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November 02, 2008

IN DEPTH - Guidelines for Entrepreneurs Explained, part 2

This is the second in a series of In Depth articles examining Norm Brodsky's 'Top Ten Guidelines for Entrepreneurs.'

  • A sale isn't a sale until you collect

Too often, stamping business owners essentially extend credit to their customers.  This usually happens when a customer RSVPs for a class, but doesn't immediately pay.  More often than not, it isn't due to a special circumstance, either.  The fact is, most stamping business owners do not require pre-payment for their classes. 

Unfortunately, if your customer hasn't paid for something, they haven't really made a firm commitment to it, and YOU shouldn't count on it as guaranteed business.  The way classes are set up, though, you kind of have to.  That means, you have to lay out the money and the time to purchase the supplies and prepare the projects.

I know almost everyone reading this has been burned by a no-show at one time or another.  And if you haven't, give it time.

How to do you avoid losing your investment because of these no-shows?  Simple.  Require pre-payment at the time of registration.  And only accept credit cards.  No checks, as they may or may not get to you when you customers says they will.

If you're worried about alienating your customers, don't be.  When you think about it, how many other businesses do they deal with that don't require immediate payment?

The most important thing for you to consider, as a business owner, is what structure and policy needs to be established in order to minimize the chances that any time you spend on your business will be wasted time.

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Comments

This is a very good reminder for me, especially since I am starting fresh with my business in a new state. Thanks, John!

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