Imagine this: you start a business based on something that you love to do. In the beginning things are moving fairly smoothly and you have everything under control. A year or two goes by and things in your personal life are changing (for the better) and your business is booming but you find yourself in major debt. Why? You fail to bill your clients. Being a busy work at home mother (or father), you just found yourself moving from one job to the next, not having time for the business part of your business.
Two weekends ago a women with a similar story appeared on The Suze Orman Show. She failed to bill $40k worth of work. Can you believe this?
When I first read about this story on The Unemployed Entrepreneur (I just love that name), my first thoughts were “WTF” and she must have another source of income and not depending solely on the income from her design business. Thanks to Miss Donna aka The Unemployed Entrepreneur who point out the CNBC site where I was able to find the entire episode and the script Suze provided to Jill (the caller) to help her collect past due money.
Get this at least one of the clients has contacted her about payment but she just didn’t bother to bill them.
Today’s lesson: Never get to busy in your business that you neglected the business side.
Now I have to admit that I failed to invoice someone for a job I did earlier this ear. The amount I am owed is pennies compared to this young lady. I give her much kudos for having successful graphic design business. However, at some point she could have gotten her husband, maybe a family member or friend to help out a little. Sitting down at least once a month to send out invoices would have lessened Jill’s overall debt. I hope Suze does an update to Jill’s story. I will be interested to see if she took Suze’s advice and how much money she was able to collect.
Here’s the segment from The Suze Orman Show that original aired December 10, 2011.
What do you think?