How to See a Deadbeat Client Before They Become a Collection Issue

Client/customer payment issues are painful. It’s not just a lack of business. Much worse, you expend resources, time/money/effort/employees. In our law firm, we need to be conscious of employee burn-out. Moreover some lawyers are paid based on collections. Non-payment is a serious moral kill. Regardless of what business you are in, hopefully the following will help you recognize when that great looking customer is really a walking disaster.

How we learned to spot the deadbeat.

Our firm started in 2003 (I came a smidge later). We began with two guys in a kitchen and no clients. The first years were extremely tight. We pulled most of our clients off of the internet (thankfully we knew how to do SEO). Cash flow was a constant struggle and of course, if we did not have funds, the first to go unpaid are the owners. We were the typical entrepreneurs, trying to get enough traction to really take off and make our business fly.

2006 was a very good year for us. The clients were mostly small, but for the first time, we were really busy (lawyers bill by the hour, so that is good). Of course, lots of clients means lots of bosses and even small clients demand star treatment. That means lots of stress. If only we could trade in some of these small clients for someone more consistent; someone with bigger matters — Better, right.