Adding Value to People’s Lives without Giving Away the Store Part 1

<h2> Business is not about the deals, it’s about the Relationships <h2>

Early in their legal career, Andy and Trish took on virtually any new client they could get. After all, money was tight and there were bills to pay. Andy had the interests and Trish handled the litigation.

Anxious to start generating income, Trish often took on cases before receiving the full retainer. One of the cases called for $1,500 up front billed against $150 per hours. The problem was however that the client only had $500 at that moment. Trish agreed to handle the case for $500 up front, just as long as she received the $1,000 balance at the first court appearance. Another case called for $2,500 up front however, this client only had $1,250, so Trish made her the same deal.

In the first case, Trish had to do more work than expected. Between legal briefs, discovery and depositions, she had fifteen hours of preparation time in this case prior to the first court date. No problem, she reasoned, the client will pay me when we get to the court. She even sent a letter to the client detailing the hours she had already invested expecting that would give him the chance to make the necessary arrangements.

The court day finally cam and the client showed up looking very concerned. He ran over to Trish and started rambling on and on about his case and how unfairly he was being treated. He even pushed the amount of stress that was put upon him. This isn’t a good time to discuss money, Trish thought, “I’ll wait till after we see the judge.”

After Trish argued her client’s case, the judge rendered a decision mostly in the client’s favor. The fines would be minimal with some small court costs. Once the legal fees were paid, the client would get through the experience virtually unscathed. The client shook Trish’s hand, thanked her profusely and started to leave the courthouse. “Wait!” Trish said, “What about the money you owe me?” “Oh, I’ll send you a check when I can. Thanks again for your help.”

A week later, no check; two weeks later, still nothing. Not even a returned phone call. After a month, Trish got angry and decided to sue the client for the money she was rightfully owed. What she didn’t know was that the second client was going to be exactly the same as the first. The installment plan was not honored and she stopped returning Trish’s phone calls as well. Trish ended up suing the second client as well.

During the first six months of her practice, ten clients failed to pay Trish as agreed. In fact, she had as many non-paying clients as paying clients. “The heck with it.” she said, “I’ll just sue all of them at once!”

Andy had his own set of problems too. In about a year’s time, Trish and Andy were left standing in a pile of ashes. The trail of carnage left in their wake was staggering, and they were left wondering how anyone can survive in this dog eat dog world of business.

But it doesn’t have to be this way. Remember: Business is not about they details, it’s about the relationships.