[H-GEN] Forming a consultancy [was: New HD in Sunblade 100]

[Greg Black]

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"Frank Brand" wrote:

| Just think you could have done $100,000 worth of work for One-Tel and
| celebrated when you got a $1 million dollar contract from Ansett.

Indeed, this is a real issue for small or sole trader concerns,
but there are ways around it.

I have a policy that I apply to all large customers: pay me what
I bill you weekly or I down tools and, if I have to do that even
once, then for the entire future, pay me in advance.

Lots of them just say "not a chance" and then look surprised
when I walk out of the room.  Mostly they call me back because
they want me and then they try to negotiate.  I don't negotiate
on this, ever.  Mostly, they agree and all is fine for a while.

Then comes the first late payment and invocation of the "pay up
front" clause.  They always spit the dummy in a big way, but
they also always back down once it's clear to them that I simply
won't be bullied and won't work without a certainty of getting
paid.

I started doing it this way in 1986 and have stuck to it ever
since.  It has caused grief for some very large companies that
are just too slow moving to get things done in a week, but I
never give an inch and they eventually get their systems to
work.  Oddly enough, the big banks have the most trouble paying
on time ...

Interestingly, several smaller businesses have just paid some
decent amount (e.g., $20k) up font and asked to be reminded in
time to make the next payment.  Much less pain all around, but
too tricky for a multinational to manage.

The other money-related thing that I've found useful in my drive
to have a life outside work is to include a penalty payment
clause for overtime.  E.g., if I'm working for $150/hour, I tell
them that this applies to work done between 0900 and 1700 Monday
to Friday.  Anything outside those hours, if it's at their
request, is billed at $450/hour, i.e., triple rates.  This also
causes consternation, followed by attempts at negotiation, and
finally by capitulation with strict orders to their staff never
to talk to me outside the magic hours.

One big company tried to control costs by not asking me in all
week and then getting into a panic on Friday afternoons.  They
would ring me at about 1630 and beg me to come in.  I'd remind
them about the penalty rates and they'd say "too bad, we'll
pay".  Then I'd work from about 1800 on Friday through to 0900
on Monday without a break, deliver whatever it was they wanted
in time for their presentation to management on Monday morning
and take the rest of the week off on the basis that I'd just
earned the equivalent of 189 hours pay for the weekend (which
would normally take about 5 real weeks) and could look forward
to a repeat the next weekend.

It ruined my weekends, but gave me fantastic pay for about nine
months when there was a palace coup and certain managers were
re-deployed ...

Greg

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