Although this type of thing can happen in our daily lives, a business nightmare occurred here last year. And it was so painful it took me five months (and four proofreaders) to write about it.
Whether in biz or life, I hope I can help you avoid this type of problem. Or at least know – in the end – you did the right thing.
A returning client wouldn’t pay a big chunk of a $6,000 invoice. That may not seem like much to you, but it killed my budget.
OUCH.
My mentors said …
For years, my let’s-grab-lunch local mentors (along with online advisors) had harped on one thing:
“When former clients return after a long time away, think of them as a new contact.
Because you have no idea what’s going on with them, n-o-w.”
… and they were right!
I immediately began updating my paperwork.
About a week into the effort, Trusted Client came to me with a rush project.
I didn’t heed my mentors and saying, “I’m sorry, but I don’t have room on the calendar right now,” I jumped in and barreled ahead. Hey! I could finish those contract changes later, right?
Kathie York to the rescue!
Where’s my Superman cape?
My Batman cowl?
I didn’t listen to my Spidey Sense ( or follow my business processes)
The Sense is only good if you pay attention to it. Which I did not. There was that doubt niggling in the back of my brain, though ….
“What happened?”
The person who approved this electronic effort didn’t calculate the final cost of all phases. She ‘left’ the company as everything fell apart. Uh-huh.
Thrown under the metaphorical bus
We had worked on several projects, but she was out of her element managing this new technical direction. Instead of explaining that to her boss, she threw me under the bus when it went off course.
OUCH, again.
“Now what?”
I listened carefully to my mentors’ after-the-fact input:
“Anything under $10K? Don’t go to court.”
I decided against court, although it took a while to get past the feeling of unfairness.
“Getting a judgment in your favor doesn’t mean the client will pay.”
[Attorneys’ fees] + [Non-payment from the client] = [Waste of more time and more $$]
“Don’t give them your final work until you have all the compensation.”
This one surprised me, but they’re right. With intellectual property, I have no recourse (once the client has the product) to ensure payment.
“Fill the gaps in your contract.”
Along with tightened legal restrictions, my contract now:
• ‘Does the math’ for the client at more stages.
• Clearly shows money owed at each step.
• More clearly states when each payment is due. in. my. office.
“Don’t forget: no matter what you do, leave with integrity.”
I agree wholeheartedly, as you’ll see in a moment.
The final email
“My client stole my work!”
I expected the director who took over the project to do the honorable thing: pay the invoice (which reflected the hours worked) and diplomatically part ways.
Didn’t happen. In a moment, I’ll share the final message I sent to him.
Look for me to steer him toward ideas for saving time and money with new projects.
When we present this helpful instead of hurtful attitude, it strengthens our professional demeanor. Plus, it’s the right thing to do.
My email:
We’re well past the due date for my invoice. I’ve lost this bet with my team and fellow business owners. I told them there was no way I would be ‘stiffed’ on this project.
Although [Company] has always been faithful, the law of averages finally caught up with me. A client has stolen my work.
—————————————-
I hope you’ve had time to read through my emails with [former employee].
They are full of good ideas for cutting project time and cost by about 75% on future updates. The trick is having a relational database (which I’ve been ‘preaching’ to [former employee] for years 🙂 ).
I’m happy to see you heading in that direction.
—————————————-
[Name], we both know [Company] provides excellent [products] for clients. My team is happy to be part of that success.
I am saddened we won’t be there for you in the future, but here’s wishing you well as you serve your customers,
Kathie
Epilogue Part I: Stepping off the pride wagon
Friends and family still urged me to go to court.
My pride screamed, “No! It’s a much better story if I’m really hurt!” I know, I know. Crazy talk.
I had my attorney submit a strongly worded letter to the client.
I still lost > $3,000
They pilfered less of my work, but did they win? Not really. I still have some anger and hurt pride, but let’s do some math-y math.
Epilogue Part II: Math-y math … and the future
[ I know ‘math-y’ isn’t a word, but don’t we need a little fun right about now? ]
I received about 50% of the money owed me. Better than 0%, right?
In my mind, a pretty good investment for a letter costing me < $300.
(And I didn’t have to leave my office and go to court!)
Fewer data items were stolen; some money was in my pocket.
Unlike my client, I made no profit from my work. That stung. I paid my attorney and my team, plus a few of my hours.
Humbling
Sticks-in-the-craw flashes of muffled anger around the edges. Even now. However:
Best case scenario if I’d gone to court for the entire amount?
I would have made almost $300 l-e-s-s than the check I had in hand!
This director knew he could get away with a partial payment, and he went for it. And now that I look back on it, I see it was a win for ‘our side’ since I started at zero!
The best path
It’s a small town. I’ll eventually see this company officer at an event.
Since I’ve represented my firm with integrity, I won’t be the uncomfortable one in the conversation when we finally run into each other.
Our pride may be hurt as we travel it, and the High Road isn’t always smooth.
But it is always … always … the best path.
Your Takeaway: “They’re wrong!” is the cry. But we must face problems with integrity. It helps our image, and it’s the right thing to do.
Join the Conversation: Have you faced an unfair experience (in business or life)?
• How did you handle it?
• What was the result?
• What could you have done differently?
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Let’s learn from each other!
Thank you for loaning me part of your day.
I know you’re busy, and I appreciate your time.
Contact me if you have questions about this post or need help non-overwhelming a project. I’m here for ya! 😎
Kathie
Kathie York is the Queen of Non-Overwhelm, and her passion is to help you reach peace and calm in work or life. In 2022, Kathie launched her practical, non-overwhelming (!) Goals Accountability Blueprint training. She added the colorful, budget-friendly ACHIEVE! Goals Toolkit interactive workbook in 2024, and the ACHIEVE! Non-Overwhelm Toolkit is coming by 2026.
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