We've all been plagued by procrastination in performing certain business tasks at one time or another. For some, it's a chronic problem. Others find that it involves only specific tasks. Many avoid these tasks because of fear. The task has moved them out of their comfort zone, and the thought of doing it freezes them into immobility. And others simply prefer to be doing something more fun. The net results, though, are usually the same—wasted time and missed opportunities.

Unhappy customers are bad for business. The good news is that there are ways of handling difficult customers that can actually turn them into your greatest allies because of the positive experience they had—service that they've never gotten anywhere else! Consider the following steps as part of your customer service approach:

• Listen, don't react. You should always spend more time listening to customers than speaking to them. This rule applies to all customers, happy or unhappy, but it's critical when a customer becomes difficult or upset. Customers will respond to you more favourably if you give them the opportunity to express themselves. Practice active listening by summarising what s/he says and repeating it back to him/her, using phrases like "So you're saying that …" or "So that I understand you completely; to make sure we're on the same page; or just some thoughts."
• Pinpoint the problem. Don't point fingers, lie or make excuses. Even if you have a perfectly good defence for what happened, resist the impulse to use it. And never, ever, let a customer know you're angry. Take steps to ensure that you remain calm and professional when you deal with a difficult customer. If an angry customer calls you, for example, and complains that something s/he bought from you is defective, listen to what s/he has to say and formulate your response. For example, "So you're saying that after you plugged in the keyboard and started to use it, you noticed that the F key stuck." Active listening not only clarifies situations, but it also makes the customer feel that you understand his/her problem, which usually helps to calm the customer down.
• Resolve the problem. Now it's time to fix the problem. Outline corrective actions. Make sure the customer agrees that you've correctly identified the problem before you take any corrective actions.
• Outline your response. A good rule of thumb is to outline up to three actions you plan to take, starting with the immediate action: "Mr. Smith, as soon as we get off the phone I'm going to call the manufacturer and ask them to express-mail you a new keyboard. Then I'll call you tomorrow when the keyboard arrives. If the manufacturer doesn't have one in stock, I can issue you a refund or help you find a comparable keyboard that will work with your system."
• Know where to draw the line. Draw the line without saying no. Tell the customer what you can do and what s/he can do. For example, if a customer is upset about a policy that prohibits refunds without a sales receipt, you can say, "It's unfortunate that you lost your receipt, but I can't issue you a cash refund without one. If you bring the keyboard back, I'll be happy to give you a store credit or exchange the keyboard for another one." But there may be a point at which you either can't or shouldn't keep trying to pacify a really difficult customer. Some customers will continue to argue or threaten to take their business to one of your competitors if you don't meet their demands. This is when you'll need to use discretion. Sometimes you'll decide that it's better to sacrifice the sale or the customer than to compromise your policies, waste valuable time and spend energy trying to remedy a situation.

You've probably heard the saying that most people fear death less than public speaking. But the reality is if you avoid public speaking opportunities because of that fear, you are giving up a prime opportunity to promote yourself and your business. More than that, you are also losing out on valuable experience that might come in handy down the road. Imagine, for example, that a potential customer wants you to give a sales presentation to their team, or some investors want to see you in action at the podium before funding your business expansion. Don't let your fear defeat you and your company.

The reason most people get anxious about speaking to a group is that they are afraid of looking foolish or inept in front of their peers and other important people. They are afraid that their mind will go blank or that their lack of speaking skills will lower the opinion others have of them. Being humiliated can destroy a person's ego and confidence. However, there are several steps you can use to help overcome the fear when you're promoting yourself or your business in front of the public:

• Be well prepared. This doesn't mean to memorise exactly what you plan to say, but rather, have a good outline of facts and information that you can talk about, make sure all material is ready and have a contingency plan. When you are well prepared, chances of failure or goof-ups are greatly reduced. You feel more relaxed and sure of yourself because you have all the bases covered.
• Have a backup. It is worthwhile to bring along a safety net in case something goes wrong in your presentation. For example, having your speech outlined on some sort of cards is a good backup in case you have a mental lapse or your slide presentation goes down. Referring to your notes is certainly acceptable to refresh your memory. But you should be prepared enough that you don't have to completely depend on your notes for your material.
• Reduce fear of your audience. Speaking to your peers or other important people can create considerable fear. However, this fear can be overcome by visualising that the people are not that important. One old trick is to imagine that the audience is in their underwear. A ridiculous image will make them seem less imposing, and it's surprising how such an image can relax you. Remember that they are just people and that they are there because they want to hear what you have to say.
• Incorporate presentation power points. Make your presentation interesting and memorable. Ask your audience members for their names, and find out their goals and experiences as they relate to your presentation. Come up with three or four important messages or headlines that you would like your audience to understand, use, and/or be inspired by. Keep your talk simple. Remember, you know much more about your subject than they do and being overloaded with information can be a burden. Weave stories—personal or made-up ones—through your talk to illustrate points and heighten interest. As teachers have been saying for years about framing your talk: Tell them what you're going to tell them, tell them and then tell them what you told them. Focus on even eye contact with your attendees—looking just over the tops of their heads or at their noses will work too. Speak a little more loudly than you think is necessary. Talking to the person farthest away from you can help you maintain proper volume. Slow down, smile and breathe. And finally, allow time for questions and answers.
• Practice, practice, practice. The more you present, the more confidence you have in your abilities to do it. Practice alone, to small groups, to friends. Local organisations such as Toastmasters can also provide opportunities to practice public speaking.

Your cash flow and control of your receivables affect every part of your business. However, collecting money owed to you usually makes people uncomfortable. It's often a problem that you wish you could give to someone else to handle because it's just too stressful. But it doesn't have to be that way. Instead of considering this situation a problem, consider it an opportunity—an opportunity to get paid and connect again with your clients.

It's important to create a debt collection system. At each point in the collection process, the action you take moves up in gradient. That is, it gets more and more proactive on your part. Such a system must be created with a view of having people move out of that system—having paid their debt—before you take the most serious steps, such as legal action and so on.

Here are some steps you can take to make debt collecting more effective and more enjoyable!

Step One: Friendlier Invoices

A simple strategy to start the billing procedure off on the right foot would be to modify the wording of your invoices from something like "payable within seven days" (which usually is interpreted as sometime within the next month) to a more specific (yet friendly) call to action. For example, "We would appreciate your payment by September 14th." The effect of just that alone will be amazing, because now customers have a specific date to go by.

If customers are still reluctant, follow up with a simple complimentary reminder. This can be a handwritten note attached to a copy of the invoice saying something like "just a friendly reminder that payment is now due." And for those who are still slow to pay, it's time to start the phone and letter process as described below starting at step three.

Step Two: Reward Your Prompt Payers

What a novel idea! Let's reward those people who actually pay us on time! Sometimes we spend so much time and energy pursuing long-term debts that we forget about those great customers who make our lives easier. Rewarding them may not directly result in the resolution of all your debts, but it will certainly ensure that those prompt payers keep up the good work.

One suggestion is to simply send a note to say thanks for paying your account on time. Or use a sticker on their next bill that says, "Thank you, we really appreciate the way you always pay your accounts on time." Or "Thank you for being such a good customer. We wish we had more like you." Remember, the little things are what make profound differences in your business. Another idea is to print up a high-quality certificate of appreciation and send or hand deliver it.

You could also try an interesting approach called a Prompt Payers Club for customers who pay their bills on time. Every month members are entered into a drawing, with the winner getting profiled in your newsletter and/or winning a prize (i.e., dinner for two, a gym membership, gift certificate, etc.). A creative way to find low-cost but valuable prizes would be to look into your client base and see if any clients would like to promote their services or goods to your other clients.

Step Three: Don't Be Afraid to Pick Up the Phone

It can be useful to call your clients, perhaps even more than once, before you write to them. Where a more formal letter would more likely have been sent in the past, these days the phone is totally accepted as a means of dealing with such issues. Because most people don't mean to fail to pay, receiving a threatening letter can take them by surprise and make them resent you. The initial phone call should be designed to offer a friendly reminder—a service more than anything else.

This phone call could go something like this:

"Hello [Customer Name], this is [Your Name] from [Your Business Name] and I'm calling for two reasons. First, I wanted to make sure everything is OK with your [product or service] and that you're happy with our service/product."

Most will respond by saying: "Oh yes, everything's fine thank you." You can then go on to say:

"That's great. I'm glad to hear it all went well. [Customer Name], there is one thing I need to ask you about. We haven't received payment for your [product or service] yet [pause], and I was wondering if perhaps it got lost?"

Many people will be surprised, or apologise or make excuses. At this point, you can go on to say:

"Oh OK, well could we take care of that now please? What would be the best way for you—credit card or a cheque, say by date?"

This, in a friendly way, gives the customer 2 clear options, and you can take it from there. (For those few who mention something they are or were unhappy about, acknowledge it as a legitimate comment and resolve it, if possible. After that, go on to confirm when they will pay you.) Make sure to agree on a specific date and say:

"[Customer Name] thanks for your help in getting this taken care of. I really appreciate it."

You'll notice that it gets straight to the point in a very non-threatening way. But it does get to the point. You'll also see that it creates action. You now have a direction or end point that you can work toward so that you can mark when your next follow-up should occur.

Step Four: Send a Letter that Reaches Them Instead of Threatens Them

If the phone call reminder does not result in payment, you can try the written approach. Unfortunately, however, most debt collection letters are negative and threatening. Instead of encouraging payment, these sorts of letters actually alienate the recipient. People don't like being threatened, even if they know they're in the wrong. It makes them resentful and uncomfortable and, consequently, less likely to pay quickly or purchase from you again.

A better tactic is to reach a debtor on a person-to-person basis. People pay people they like! And the purpose of any debtor letter is to retrieve your money in full. As such, it should build empathy in your favour. Your customer will relate to your message and understand your position better, instead of being offended by it, and feel compelled to take care of the debt. Language like "Thank you in advance, <FIRST NAME>, for taking action on this now. We really do appreciate your helping us meet our business obligations." Or "If for some reason you can't take care of this now, we understand—we have financial pressures too. But please do call us so that we can find a good solution." The trick is to make the letter friendly because people don't like owing their friends money.

Educate and Empower Your Team Members

Usually the best way to solve a problem is to have the whole team focus in on it. It's sometimes hard for team members to grasp the seriousness of the situation because their salaries don't alter as the level of debt alters. So educate your team about how important it is to get paid on time and give them the systems, skills, and support they need to implement an effective debt reduction.

Empower your team to make deals, such as payment schedules. And give them an incentive or reward. The cost to you is very little, and it really focuses your team. Once they learn about the difficulty of collecting debt, they may just be a little stricter with their controls on credit.

In today's competitive market, and with the widespread use of the Internet, comparison-shopping is easier than ever. Consumers have come to expect an attractive price and a value differentiator—making it tough to turn a profit. But there are other options available to you besides lowering your prices (see Edition 9 of this newsletter for ideas on adding value without discounting). One approach is to actually raise your prices. It can certainly differentiate you, but will it drive your customers away? And could you afford it if it did? You may be surprised at the answer.

The following table shows the amount by which your sales would have to decline following a price increase before your gross profit were reduced below its previous level. At a 30% margin and a 10% increase in price, you could sustain a 25% reduction in sales volume before your profit were reduced to the previous level. You would have to lose 1 out of every 4 customers! You need to ask yourself is it likely that your price going from $10 to $11 is going to stop 1 in every 4 customers from coming to you? Not very likely.

If your present margin is...
	20%	25%	30%	35%	40%	45%	50%	55%	60%
And increase your price by...	To produce the same profit, you could reduce your sales volume by...
2%	9%	7%	6%	5%	5%	4%	4%	4%	3%
4%	17%	14%	12%	10%	9%	8%	7%	7%	7%
6%	23%	19%	17%	15%	13%	12%	11%	10%	9%
8%	29%	24%	21%	19%	17%	15%	14%	13%	12%
10%	33%	29%	25%	22%	20%	18%	17%	15%	14%
12%	38%	32%	29%	26%	23%	21%	19%	18%	17%
14%	41%	36%	32%	29%	26%	24%	22%	20%	19%
16%	44%	39%	35%	31%	29%	26%	24%	23%	21%
18%	47%	42%	38%	34%	31%	29%	26%	25%	23%
20%	50%	44%	40%	36%	33%	31%	29%	27%	25%
25%	56%	50%	45%	42%	38%	36%	33%	31%	29%
30%	60%	55%	50%	46%	43%	40%	38%	35%	33%

Before you make any hasty decisions about your pricing, carefully compare your prices to your competitors'. Is there a product category you can dominate by having the best selection, a dependable in-stock position or expert sales information? If so, you may be able to raise prices in this line and not lose any customers at all (reviewing Edition 9 of this newsletter will give you some guidance here).

"You must do the things you think you cannot do"—Eleanor Roosevelt

While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.

We have systems, programs, turnkey solutions and one-on-one business development programs tailored to get results for you, address many of the ideas outlined here and, ultimately, build the business you've always wanted. Call Cameron Lamb on 1800 996 322 before 5:00pm, Thursday February 14 and receive 2 complimentary tickets, valued at $125 each to our next Business Development Workshop absolutely free. That's a value of $250.