Featured Coaching Training: 7 Proven Principles for Managing Your Accounts Receivable
Too many small business owners continue to extend credit to customers who are late on paying their bills. This series will outline some of the best principles for managing accounts receivable effectively.
Featured Coaching Excerpt - Notes & Transcript, Part 1
PRINCIPLE #4: Don’t Delegate Debt Collection To Passive People
Lesson Nugget: Delegate debt collection to someone who will aggressively pursue obtaining payment.
Notable Quotable: “Leaders of companies that go from good to great start not with “where” but with “who.” They start by getting the right people on the bus, the wrong people off the bus, and the right people in the right seats. “ -Jim Collins (Bestselling author of Good To Great and Management Expert.)
Lesson Nugget: Have people on your team that:
1. Have high integrity.
2. Have a coachable attitude.
3. Have the same vision and mission.
Action Step: Do not assign chronic inaccurate communicators to your debts collection team.
- Principle number four, don't delegate debt collection to passive people. Clay, break this down for me.
- I want to reference George Michael.
- Okay. And so, George Michael, he's one of my favorite musicians, his voice is just awesome, seriously, the guy can sing. And so, George Michael, though, if you go on YouTube right now, and you watch George Michael "Symphony", or George Michael "Orchestra", "Live in London", it's an unbelievable performance, George Michael. And you wouldn't want to hire me to replace George Michael. You know what I mean, like you wouldn't want to get the symphony, and get all the people there, and get everyone organized, then go "Hey, he couldn't be here tonight, "so Marshall and Clay are gonna do it instead." 'Cause we're not as good as George Michael, right? I mean we don't have any musical talent here, you know? So, you wouldn't want to delegate to somebody who shouldn't, you know, you wouldn't want to delegate to anyone other than George Michael for George Michael's concert. You feelin' me?
- Yeah, I'm with ya.
- So when you're doin' collecting, money, if you do have to collect money, don't delegate it to a passive person.
- Delegate it to somebody who's intense. I'm being real, I mean there's people who are so passive, there's people watching this right now, and you know who you are, and you won't even ask somebody, you won't even say excuse me. Someone could walk right in front of you, and you wouldn't even say, "Excuse me." You wouldn't do that, because you don't want to be confrontational, you hate confrontation, you don't want to get in the way, you don't want to speak up for yourself, that's your deal. You're the kind of person who literally, Somebody could sit down at your desk and start working, and you wouldn't even tell them, like, "Excuse me, that's not your desk, that's my desk." You let people borrow a shirt from you, you know who you are, you went to college, and you let your roommate borrow a shirt, and they didn't ask you, and you let 'em borrow it so often that eventually they thought the shirt was their own shirt.
- That's who you are. And if you're someone like that, you don't want to be doing collecting, 'cause you will literally end up in poverty. And so what happens, these business owners, they have people that are on the wrong seat on the bus, so to speak, and they're doing the wrong task, and so literally, you have an accountant, or a bookkeeper, or someone who's passive, who's in charge of debt collecting. If you're gonna have debt collecting, If you're gonna have to do it, have like a sales person do it. I mean, get somebody who's aggressive. Just don't delegate to passive people, it's a bad deal.
- So, Jim Collins, he's the author of "Good to Great"
- That book is awsome
- best-selling book, "Good to Great", "Built to Last", "Great by Choice", a number of these different business books, it's awesome.
- Did he write that book called "Dating Tips for Marshall Morris" too?
- I don't know, it might be somebody else.
- Kind of a timeless classic
- Yeah, it's timeless
- Yeah, apparently the guy he wrote it for never read it.
- [Marshall] Ouch
- [Clay] Sorry
- He writes this notable quotable, "Leaders of companies that go from good to great "start not with where, but with who. "They start by getting the right people on the bus, "the wrong people off the bus, "and the right people in the right seats." So what he's sayin' is that you need to start with the people that are in your company, Clay, break it down for all the Thrivers that are watching, Why is this important?
- Sorry, I was just breaking it down there, okay?
- Break it down, anyway, here's the deal. We had a wonderful lady come to our office this week named Puja. Puja, I hope you're watchin', I hope you're watchin' this episode. But Puja's from India, I believe, right, from India?
- Super talented, right, sharp. I don't know if she'll be the right fit, or if she want to work with us, but why did I say we need someone like that?
- We needed somebody sharp because they are people of high integrity,
- High integrity,
- High integrity, the capacity to learn,
- The capacity to learn,
- the growth mindset, and then somebody that had the same mission, the same vision for the company.
- That's it, I don't even care if she knows how to do the specific coding I need yet. If you went to school at Carnegie Mellon, and you're studying coding or computer science, and you kinda know what you're doing, enough to get to a 4.0 or a high 3 point whatever, and you moved here from India and you've adopted the language and the culture, I'm pretty positive you could handle coding. I'm pretty positive you could learn new skills. Now if you're somebody who went to a top school, because your parents got you into school, and you couldn't get a high GPA, and you couldn't attend class on time, and you can't motivate yourself to be consistent, and you just can't seem to figure out how to do life, no amount of skill will compensate for your jackassery. So, we see this all the time, they're super talented musicians, they're super talented artists, they're super talented people, but if they don't want to, they don't have high integrity, if they're not coachable, and if they don't have these certain skills, it doesn't matter what job you give them, they're gonna fail. So what I'm getting at here, just wanna make sure, is when you hire somebody to do debt collecting, these are the three attributes you're looking for, okay? You're looking for somebody who does not mind confrontation. Two, somebody who's money motivated, they wanna get money, they're like a sales person, right? And three, is they have high integrity. That's how you do it. But you just gotta get the right people. So, if you're delegating, and I see so many business owners where they have like an alpha female who owns the company, or an alpah male who owns the company, and their wife or husband helps them in the business, and they're like, "Hey, could you collect the money? "could you do it, I'm behind out here. "I know you're really passive, but if you could just "break all your personality traits, you know, "if you would just throw what you normally do "out the window, and then just become aggressive "for this task, that would be great." It's not gonna happen, no one's gonna do that. Stop hiring the wrong people to do the job you need to get done, don't do it.
- So as an action item for all of the Thrivers out there, do not assign chronically inaccurate team members, inaccurate communicators maybe?
- Yeah, I mean there's just people that you can't have 'em do a checklist for the bathroom 'cause they're not high integrity and they're not detailed. Don't put 'em in charge of your money, I'm tellin' you. Stop doing it, I see it so many, 'cause in small businesses, you know how it is, you have to wear so many different hats. You have to be the owner, the founder, the marketer, the president, the HR director, the accounting person. You see, what owner's tend to do is they tend to delegate the accounting, the money collecting, and don't delegate to betas, just stop doing it.