Who Is Kenneth Grayer .....Really

Spontaneous Idealists like me are creative, lively and open-minded people. I am humorous and dispose of a contagious zest for life. My enthusiasm and sparkling energy inspires others and sweeps them along. I enjoy being together with other people and often have an uncanny intuition for their motivations and potential. Spontaneous Idealists are masters of communication and very amusing and gifted entertainers. Fun and variety are guaranteed when I am around. However, I may be sometimes somewhat too impulsive in dealing with others and can hurt people without really meaning to do so, due to my direct and sometimes critical nature.

I am a keen and alert observer; I miss nothing which is going on around me. In extreme cases, I tend to be oversensitive and exaggeratedly alert and I am inwardly always ready to jump. Life for me is an exciting drama full of emotionality. However, I quickly become bored when things repeat themselves and too much detailed work and care is required. My creativity, imaginativeness and originality become most noticeable when developing new projects and ideas - I then leave the meticulous implementation of the whole to others. On the whole, Spontaneous Idealists attach great value to their inner and outward independence and do not like accepting a subordinate role. I therefore have problems with hierarchies and authorities.

As a Spontaneous Idealist I am one of the extroverted personality types. I enjoy working in a colorfully diverse group of people who interest and inspire you. Working in a “secluded room” is not my thing. My sense for the motivation of others is almost eerie. I constantly observe that which happens around me and have no problems noticing all sorts of things simultaneously or communicating with several people at the same time.

My enthusiasm is contagious to others and that is why my colleagues and friends all appreciate me as an important member of their team. My articulateness and sensitive ear for nuances in conversations with others obviously play a role. For me, this team-oriented environment is very important because I need to receive positive feedback and recognition like other people need air to breathe. It would be practically impossible for me to contribute everything I need to maintain my high ideals, by myself.

Variety, challenges and fun are important ingredients in my area of responsibility. I appreciate receiving new stimulation, meeting new people, and continuously collecting unique experiences. However, too much routine, too much detail work and the necessity to stick with one project for a very long time is not my thing. My strength are creative problem solutions, discovering new ways and opportunities, the conceptualization of new ideas on one hand, but not so much their concrete implementation on the other. Ideally, I have a staff of capable colleagues that takes over my concepts and runs with them.

This Is Me!! ….

Should-a, Would-a, Could-a, ...Are You That Business Owner or Entrepreneur

Entrepreneurs are persistent, and yet vulnerable.  When an entrepreneur is locked onto an idea or a thought, they will stop at nothing to see a project succeed. Entrepreneurs think “Do Now”- develop the plan along the way.  In the beginning there is only one direction and that’s up-maybe you take a couple of hits along the way but that’s all part of the journey. The plan that should not be developed along the way is your “Getting Paid Plan” 

The start-up phase of anything is exciting- it’s dealing with the bumps and bruises along the way that if you are not prepared can leave you and the business vulnerable or even bankrupt.  What is the most important aspect of a business? Is it sales, marketing, or cash flow? It’s all of the above if you don’t market the business; there are no sales thus any cash flow. The guru’s say “If You Don’t Plan-You Plan to Fail” are the so called guru’s giving you the complete “Plan For Success”?  

It has been my experience that most businesses fail due to cash flow management- what I mean by that statement is  entrepreneurs don’t think about policies and procedures until it is too late. In the beginning you should be thinking-what are my policies and procedures if a client is not paying me, or is a slow or sporadic payer, at what stage should I consider outsourcing, what skill sets if I hire an accounts receivables representative have, what resources are available for credit & collections training, how much money am I losing if the receivables stay on my books etc..  There is not enough emphasis placed on Entrepreneurs and Small Business owners to get the education they need in order to efficiently and effectively manage their accounts receivables.   

As I have stated in the past most small business owners and entrepreneurs are reactive in nature instead of proactive.  You should of done-ABC, which would have done-XYZ and prepared you to handle obstacles that came your way that could have yielded a more positive result.   At some point entrepreneurs, small business owners and the gurus should stop take a step back and realize just how important it is for businesses to have a plan in place for their credit and collections.  Oh-how does that saying go “If You Don’t Plan-You Plan To Fail”

Let’s Get It Right The First Time

Thanks For Reading My Blog
Kenneth Grayer

Establishing Your Credit & Collections Policy

A credit and collections policy is a document for your business and your clients. Whenever you aren’t paid immediately for the product or service you just provided; you have just extended your client a line of credit even if this was not your intentions.  Let’s look at the other side your client does pay you immediately but the check was no good, the clients bank account was closed or perhaps the client was not happy with the product or service you provided or maybe the client is a slow or sporadic payer.

A credit and collections policy addresses all the issues above and much more.  Here is the bottom line you went into business to make money, be in control of your destiny well I hate to break the news to you without your own established policy it’s easy to let your client’s control you based on what their needs are.  There is an old business school joke that says “You Set the Price, I will set the Terms” and your clients literally did and do.

Some Consideration in Setting Your Policy

Let’s take the guess work right out of it and get started in setting up your policy by asking yourself the following questions:

1. How do I want to receive payment cash up front, Cash On Delivery (C.O.D) or extend credit
2. When I establish a new customer what processes do I have in place I.e.…credit application, detailed explanation of services to be provided
3. Establish a survey that ask question such as: were you satisfied with the product or service provided...(Optional) however this limits the possibility of any disputes and addresses any issues or concerns the clients may have.
4. Will I accept deposits for work performed or shipment of products?
5. What contract forms do I need and what type of language do I need in my contracts.
6. Debt Management Recovery Plan (what action will you take to recover outstanding receivables)Recovery Action by (This is where you are to select an agency for collections activity) Debts in excess of $______ (example $1,000.00) will be referred out for collection Delegation of Authority (Whom will have authority to place accounts for collections) This is Typically the responsibility of the CEO, President, CFO When account is unsuccessfully recovered (Forward flow to Legal Counsel for litigation)

Any number of credit and collections policies will do the trick; well I should not say that, the policy should be industry specific.  The main idea is to establish your credit and collections policies before you open your doors for business.  I know that could be difficult but it will eliminate spur of the moment decisions and will allow you to think clearly when you begin to discuss your policies with your clients and staff.   

An informed client is a happy client. The issues that I see when it comes to your credit and collections policies are enforcing them, this is not a document that should be taken lightly and your clients should be aware that you do enforce your credit and collections policies.   

After your policies are established it is important to sit down with your executive team and review this policy with them.  Especially your sales force since they are the ones that will be selling your product or service.  As a start-up it is ok to not have such a rigorous financial policy we don’t want to scare customers or clients away.  On the other hand it may be in your best interest to eliminate the business that has issues with signing contracts with you or make firm commitments

Who's But Are You Covering

When it comes to not getting paid for the products or services that you provide, I always ask my students "Who's Ass Are You Covering"? I get blank stares-we all know the look "Deer In Headlights" I would like to ask you that same question, Who's Ass are you covering and then immediately after that ask yourself-Why?  At a minimum here are the top items small business owners spend money on:

- Business Cards/Brochures
- Website,
- Incorporating Services
- Marketing

Here is what we spend time thinking about Sales, Sales and more Sales - this is not a bad thing. It's exciting when you make your first deal, but always take a deeper look at your new potential client do your homework "Cover Your Ass".  Run credit checks, pick up the phone and contact references and inquire about how they pay, contact their bank etc...   

Tip: When contacting banks you might want to say "that you need to verify funds on checking account number in the amount of $10,000 thank you"  if you noticed I did not ask "if it was ok to verify funds on account number" you’re asking for permission will more than likely get a No response every time.  You have to assume that they are going to provide you with the information-you might get some push back but keep trying.

Tip - do not refer to your potential new clients as babe, buddy, honey, sweet heart, brotha, bro, homey; for obvious reasons.

Prior to doing business with your new potential client take 15 minutes to go over your credit & collections policy this way there are no surprises if your new client begins to have problems paying their A/R's on time?  Remember not every sale or client is a good sale or client to have.

Thank You for reading my Blog
Kenneth Grayer CEO/President
Financial Management Institute Inc
Email: training@teamfmi.com
Web: www.teamfmi.com

Credit & Collections Policies vs. Business Plan

Learning to collect on your delinquent Accounts Receivables should be a priority to you when you open the doors of your business.  When individuals make the decision to go into business there is a lot of emphasis placed on writing a business plan but at what point does writing your credit and collections policies become a thought?  Typically when you are not getting paid for the product or services that you have provided is when you spring into action.  This is being reactive not proactive. 

Not enough emphasis is placed on what to do or how to collect from non-paying or slow paying customers.  Organizations such as the Small Business Administration would have you believe that your business plan is the most important document needed to successfully operate your business, which is partially true.  I agree that some sort of business plan is necessary.

Starting and running a business is very exciting and rewarding in the beginning-all the fun stops when you are not getting paid for the product or service that you have provided.  Let's think this through-if your business is suffering then your household is suffering as well?

Now you have to convey to your creditors "I will pay you when my clients pay me" .  The harsh reality is you have taken more of a personal approach with your clients, and you don't want to upset them because they might not want to do business with you anymore.  I can respect the emotional thought process but honestly it's you or them.

 In the start-up phase of your business venture your goal is to go out and market your product or service and chase money latter, sometimes that money you are chasing never comes back to you and the client whom you thought was a "Good Guy" is gone and out of business which can and will soon be you if you don't get proactive.

Don't procrastinate on writing your credit and collections policies.  Thank you for reading my Blog visit us at www.teamfmi.com and subscribe to newsletter


                                                                                                             
Financial Management Institute
Kenneth Grayer
CEO/President
Email: training@teamfmi.com

Professional Collections is not a difficult profession everyone can do this job but not everyone can handle the job. You have to have mental toughness to succeed; experienced and highly skilled/trained collectors reading this know exactly what I’m talking about.

Being a collector or managing your account receivables requires several different skills set. Just because you call on a business that has outstanding receivables does not mean they are going to pay you right away.  All businesses go through tough times and give objections why they cannot pay their contractual obligations.

The primary objectives of a professional collector is to educate the client on the facts, gather as much information from the client/customer and motivate them to make a decision. The decision that some business owners will make is to hang up or simply evade your calls. Most business owners do not default on contracts intentionally, something happened. A professional collector will ask the appropriate questions to gather full & complete information & provide the best possible arrangements for themselves, and the client if they want to continue to do business with them.

Another important factor is professional collectors must use every means available to make contact with their customer in the shortest amount of time. Let’s say you decide to place accounts with a collections agency for a fee if collected is called a contingency account.  Contingency accounts are accounts that are placed with a collection agency by a creditor (That's You) to liquidate their portfolios or locate a business that has relocated and all the information that you have from the client is no longer valid information.  Yes this does happen


Collectors must use appropriate skip-tracing efforts when necessary. When a professional collector has located the business/owner we must ensure that the individual understands the purpose of the call and establish an authoritative line of communication with the business owner.
Being a successful collector requires excellent communication skills; you have to be able to analyze situations, make decisions, manage your time, have patience, use a little finesse, and have a heightened level of focus. The first thing I like to do with a collector is determine if in fact this is something they really and truly want to do. Now that I have a commitment from you, buckle up !!


Q - Are you one of thoughts guys whose wife or girlfriend always says "You Never Listen To Me"? please don't say "NO"- You lying Ass (LOL). Communication is a conversation between two or more individuals. One person listens and one person speaks…It is important to understand that Two people cannot have a successful conversation and accomplish a common goal with interruptions.  Developing communication skills will ensure the collectors’ ability to control a call made or received and increase your earning potential. 

It’s not what you say; it’s how you say it that will eventually get you paid. As a collector you will handle many different telephone calls from business owners who are: frustrated, angry, and embarrassed unless they just don’t give a shit.  During your communications you have to determine what is going to be a motivating factor to getting your invoices resolved. 


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