Running a Business is Like Running

I have been working out and running ever since I discovered a gym with a universal weight machine and a track near my freshman dorm in college that were both open and available to all students.  This morning, during one of my runs, I thought about some analogies I've heard over the years comparing success in business (and life in general) to running.

For each, you have to make a commitment and be consistent with your efforts.  Letting up or laying off just makes it harder to get back up to your previous levels.  Keeping up in running & in business is easier than catching up.

When I run through my neighborhood, there are hills.  Running uphill takes more effort but when going downhill its tempting to ease up.  Take advantage of the downhills and continue to push.  When times are good in business and revenues are flowing in, keep working just as hard and don't ease up.

I like to end my runs with a sprint or an extra "kick".  At the end of each hour, each day, each week, each month and each year, put in an extra "kick" to your business efforts.  One more phone call, email, letter, meeting, etc. to try and build your business.

I know there are many more analogies, but you get the idea.  Be consistent, persistent and dedicated to your business and you will see the rewards for your efforts!

Scott F. Soape

Bank Referrals

Cultivating referral relationships with as many sources as possible is always a good idea.  Commercial loan officers at local banks are in a unique position to encounter business owners experiencing financial difficulties.  Getting numerous bankers on your referral list will dramatically enhance your revenues.

Bankers will be quick to know when their commercial loan customers are having problems.  When you explain to bankers that you may be able to assist their commercial customers with their non-bank loans on a no results, no charge basis you will give them a very valuable resource to offer their customers.

By negotiating improved payment terms and / or discounted settlements with other creditors, their customers will have more funds available to make their bank loan payments.

Make a few inquiry calls to some of your local bank branches, both big and small, and try to speak with someone with the authority to approve referrals your way.  Presidents and Branch Managers are obvious places to start but many banks have also set up special divisions specifically for problem commercial accounts.  The more people with the bank you can make aware of your risk-free service the better.

Scott F. Soape

Another Business Resource

There are many reasons you may want to either incorporate your commercial debt resolution practice or designate it as a Limited Liability Company (LLC).

A good resource for assistance is LegalZoom.com.  Click the below link for their website and browse for answers to common questions and pricing:

www.legalzoom.com

Scott F. Soape

Your Edge Over Lawyers

I recently spoke with an attorney that specializes in commercial debt resolution and negotiating settlements.  He indicated these types of cases were his primary source of revenue and that he has made a very comfortable living doing this for many years.

We discussed some of the differences between how I operate and how he operates.  He brought up an interesting point which I was aware of but have not given much thought to in quite some time...

Lawyers are precluded from soliciting clients over the phone.

Although they can mail letters offering their service, attorneys are not allowed to follow up with phone calls.

This gives you a very important edge when contacting prospective clients since a phone call can be the most effective way to offer your "no risk" service to debtor businesses being sued.

I have said it before, but be sure to include follow-up phone calls when offering your service.  It may be the only call a prospective client gets!

Scott F. Soape

Keep in Touch with Referral Sources

My complete Business Plan System identifies several great referral sources for a continuous stream of qualified leads.

Set up a regular system to remind your referral sources of your service so that you will be the first person they think of as and when they encounter businesses that might benefit from your service.  Send an email, brochure, flyer or short note on at least a quarterly basis.  And be sure to thank your sources for any and all referrals regardless of whether or not a fee is generated!

Cultivating and keeping in touch with as many referral sources as possible will ensure a healthy commercial debt resolution practice.

Scott F. Soape

Get Familiar with Credit Reports & Scores

As a commercial debt resolution professional, you need to be familiar with credit reports and credit scores.  The BBB recently posted a brief article regarding these topics on their website you might find helpful.  Please click on the below link to view.  I also suggest you take the time to get a copy of your own free credit report at www.AnnualCreditReport.com .

http://watchyourbuck.com/2012/01/18/know-the-difference-between-a-credit-report-and-credit-score/

Scott F. Soape

The Bigger the Creditor, the Better!

I have found over the years that dealing with larger creditor entities usually improves my odds of reaching favorable settlement terms for my commercial debtor clients.  When you stop to think about this, it makes perfect sense.

A smaller creditor seeking financial remedy in a dispute will not be in as good of a position to forgive or write-off a large dollar amount.  They will want to squeeze their debtor companies for as much as possible simply because they truly need the funds to continue operations.

Larger entities, on the other hand, are able to continue business as usual even if they settle debts at substantial discounts.  They will have a larger capital base and can more easily absorb losses with little impact to their bottom line.

Don't make the mistake of shying away from large corporate or government creditors thinking they are too powerful to negotiate with.  You will find most are quite willing and able to work with you for discounted settlements to the ultimate benefit of your commercial clients.

Scott F. Soape