| In running an IT consulting business, do not be too | | | | Require Written Agreements |
| quick to give new clients credit. Even when you give | | | | It's even worse if you're selling products like |
| them credit, keep their lines of credit relatively low | | | | hardware, software and peripherals. Always insist on |
| until they've built up some history with you. | | | | written agreements for your IT consulting business. |
| Provide Low Lines of Credit | | | | Verbal promises are for amateurs and belong in an |
| If you have new IT consulting clients, it may make | | | | era of time that disappeared decades ago. |
| sense to start them out, even if you get a credit | | | | State what you're going to do, how you're going to |
| application and send out some credit reference | | | | do it, when you're going to do it, what it's going to |
| letters, with a $500 or $1,000 line of credit. Don't go | | | | cost and the payment schedule, in four to six |
| allowing them to hang you up on a $5,000 or $10,000 | | | | sentences. Of course, on larger IT consulting projects |
| leash before they've proven they're able to pay small | | | | you will need multi page proposals. |
| invoices. | | | | The Bottom Line about IT Consulting |
| If they need a lot of work before that, it makes | | | | Always insist on written agreements, even if it's a |
| sense to get larger deposits and be able to accept | | | | very small job. Just type up a couple sentences, a |
| credit cards, but do not be too quick to give new IT | | | | letter of understanding, to ensure you and the client |
| consulting clients credit. It's a way to get yourself in | | | | are on the same page. |
| big financial trouble really fast. | | | | |