A WORD FROM THE AUTHOR

Rushneek Singh: You Are Doing Business In India For So Long But You Are Facing One
Challenge And The Challenge Is That You Are Not Getting The “Payments On Time”.
Is That Happening ! So, You Are Working Very Hard For Your Business From So Many
Years But Your Pockets Are Still Empty And Bank Doesn’t Reflect, Why It Doesn’t Reflect
Because Payments Are Not Coming On Time. When You Sell The Products To The Client
For The First Time, That Time They Are Talking So Nicely And Telling So Many Good
Things Like We Will Do Payment On Time And All; But Once The Product Is Dispatched,
After That They Are Not Giving The Payments On Time…..

My Dear Friends My Name Is Rushneek Singh, I Am A Business Owner, Converted Into A

B2B Payment Recovery Coach.So, I Am Coaching On This Subject For 2.5 Years Now And I
Have Coached More Than 6500 Business Owners On This Subject And They Are Getting
Amazing Results On This.

Yes, And In My Private Community 350 Paid Members Are There Now, Who Purchased My
Complete Course And They Are Implementing This. So, Looking At This Scenario I
Thought Why Should I Not Guide On This Challenge Like The Challenge Of Payment
Recovery In This Our Indian Community And To The Business Owners And To Give Them
This Knowledge Why Your Payments Get Stuck.

​ ​
15 Principles To “Get your Payments on Time Always”
Book for functional business process.

by Rushneek Singh

A business owner converted into a B2B Payment Recovery Coach , New Delhi.
 Introduction
The book “15 principles to get your payments on time always” is
designed and plans to meet the requirements of the people who are
running a business or are into the process of starting a business in
India. Here in this book the basic 15 principles of running a business
or starting a business are mentioned. The main aim of this book is to
help and guide Indian business owners to learn the ways of running a
successful business.

This book also aims at the achievement of getting your payment back
or getting it recovered from your customers at the earliest.

These principles do not determine the behavior of your business and

can be used only during certain situations. They tell about certain
types of business and how to get your payments from the customers.
This book plans to teach the difficulties and skills of a business in
today's world.

The principles have been planned in such a way that they can take the
reader from unknown to known in this world of business. Each
chapter is planned to let you know about the legalities of business and
how to deal with different situations in the prospects of business. All
aspects of business have been fully covered, namely starting a
business, proposing your own products to other people and telling
them about your business, selling your products to them, getting the
payments done on time. It also aims to teach the new-comers from
simple business to advanced methods of business and let them know
about the day- to- day problems.
The author “Mr Rushneek Singh” also plans to write further on the
same topic of dealing with the problems of business and making
certain principles of work ethics in the business and following them
strictly.

Even the legalities and other advisory things are also mentioned in
this book so that you get help to recover your old payments also.

It is hoped that the book, in its present form, will serve the readers as
a complete and practical textbook for running a business and to
recover their payments in the business and be cautious for the future.
Index. Page number

1. Don't send products in over quantity 07

2. Stop saying - Karlenge, Dekh lenge 09

3. Don't buy products on credit 12

4. Features of Bad Paying Customer 15

5. How to deal with new customers 17

6. Do not let the debt get old 20

7. How to deal with "C" and "D" category customers 22

8. Reverse your payment model 24

9. MSME or UDYAM Registration is mandatory 26

10. Get your FDs back 29

11. Do not take loans & sell goods on credit 34

12. Service charge- INR 500 37

( The New Marketing Strategy)

13. Start saying “No” to customers 40

14. Loan leke udhar maal becha 43

15. Business Loan mein- band kar diya (2 baar) 45

 Principle - 01
Don’t Send Products in Over Quantity

Let me tell you that there are 2 Angles of Payment Recovery when we are doing
business in B2B and when we talk about payment recovery, there are 2 modules in
that ; one module is that ‘to whom you have given the products and your payment
got stuck’- and second is- ‘how it will come back, like how you will receive your
stuck payment’, more important than this is that your payments should not get
stuck in future. Now lakhs are stuck but in future life time your generations have
to do business in crores. So their payments will not get stuck. So what you need
for that, you have to create some principles for your business today only, when
these principles will be built, then it is my promise to you that in future your
payments will never get stuck.

I gave these principles to my participants and they are getting outstanding results
on this. They are telling me, ‘Rushneek sir, where were you earlier, like our lakhs
of money could have been saved from being stuck.’ Yes, I have the written
testimonials from those people.

After seeing that I have to guide the business owners and my community, I have
decided to make a series of principles, to get your payments or recovery of your
payments always on time. So, this is the first principle of this series and I will tell
you about the first principle.

You sold your products and the payments became due and you didn’t receive the
payments after it became due, then you don’t have to deliver the next lot. For
example: on 1st January you have delivered the goods to someone on the condition
of 30 days payment, which means the payment is to be received in full on 31st
January or 1st February and the shipment was of 10 lakh and full payment must be
received.
Delivery was done on 1st January and 31st January came and you raised the bill or
you asked for the payment and on 1st February he said that please wait for a few
more days or he said that take this partial payment and please send more
products of 5 lakhs rupees. So, this is the first principle that till now you didn’t
receive the full payment as according to the commitment, as the condition which
is set. If the payment is not done on that condition, then more products will not
be shipped or dispatched.

This is one big and basic ground principle. I will also say like this- that, if the
customer does not respect his words then how will he be able to deal further? It
means that on the first day he says that my payment condition is 30 days, now 30
days are complete and you asked for the payment and he didn’t give or he offered
less payment and he gave more order and you ship the order means you didn’t
respect your words.

If you do not respect your words, your product, your goods or your commitment,
then he will also not do so and he will take the advantage of this.He will think that
‘we talked to him for the payment in 1 month and we didn’t give the money and we
gave more order and you sent the order means you are like that only’ and he uses
you, uses your money, and he purchases his properties, his cars and everything by
using your money and you don’t do anything. For example, we made a customer
like this that he is going in an AUDI car and we are still going in hatchback i10
only with our money only. This is happening. This is surely happening.

This is the first ground principle that the commitment which was done- means
the commitment was of 1 month, 2 months, 3 month or 4 month. That doesn’t
matter, if the payment doesn’t come as per the commitment, then more products
will not go and everything will be stopped there only.

If you will not respect your goods, your words or your business, then no one will
do, ok!.

So,this is the first principle..

 Principle - 02
Stop Saying - Karlenge, Dekh lenge

Hello everyone, how are you all perfect, great. So, I will share the principle
number two of “how to get your payments always on time”. The name of this
principle is that we have to ‘stop saying three words’, what are these words: Stop
saying ‘we will do’ or ‘we will see’. You have to stop saying this.

You have to remove these words from the dictionary of your life and for the whole
life. I injected this thing completely in the brains of my participants that you have
to remove these three words completely from your dictionary and they started
getting the results from this.

How? I will tell you. Like you or your sales representatives are booking the order
with the customer and they are showing the samples to the customer and he says
that give me this at that rate and you told some other rate and he said ok sir,
karlenge, dekh lenge or maybe you said karlenge, dekh lenge, you just make the
order. Order is ready but the rate is not fixed yet. He asked for the discount of 10%
and you said 5% and again he said 7% and he said ‘we will do sir’; just send the
order that's it. And because of this confusion what happened is that the product is
delivered but when the time of payment comes -the rate was not fixed and the
discount was also not fixed. Similarly when you asked for the payment and he said
‘sir, please wait for some time I will get that done or we will do something for this’
he said. He asked for more products, you asked for the payment and he gave you
more orders and what he is saying is that ‘karlenge’ no problem, you just send me
more products and you also send him more products.
You were settling the accounts with him but the account wasn’t settled, you
received more orders from him, you sent more products to him.
You said to your accounts team ‘it’s ok we will do it later Ramesh ji, let’s send
more products to him’. No, these three words are becoming so costly to you and to
your business. You may check your history; like whatever the payment is stuck, (as
per my experience in the business for 20 years, and my participants also told me
that wherever the payment is stuck,) in 80 to 90% cases we told these words that
we had said karlenge, dekh lenge, just send the order.

Check your system, check your history, check your bad debts that you had said
these words or not to them. Maybe 20% of you didn’t tell but in 80% cases, this
happened like karlenge, dekh lenge. In-fact you have to remove this from your life.

If you have to do something from home or you have some work or you have to
send any of document from the home and you parents or anyone told you any
work at your home then you are like father it’s ok, we will do, now let me go, we
will see it later and that work becomes pending and it creates bad effects. You are
telling the same thing to the kids, spouse or you are telling this to your team or
telling to the vendors like you had said to your vendors that send this product and
they told something like the rate will be this and you said it’s ok we will do that
you just send the product. He sent the product but when the time comes to settle
the accounts and time comes to clear the payment-that time you said why you
applied this rate and all. You didn’t talk about the rates earlier, so these three are
very bad words and when I learnt that due to these words, we are getting so much
loss in our business and now is the time this was invented that you have to stop
telling these words.

I stopped saying these words in my business and the first one who is coming to
me I asked them first that if you are saying these words, then you have to stop
saying these three words. And today if you will stop saying this, then you will see
the results in the coming months. And you will say a ‘big-big thank you’ to me that
‘sir, you told me this and we implemented it and we are getting good results.’ Let
me tell you one thing that the complete knowledge which I am giving you is-you
will not get it on you-tube because this is practical knowledge and I am not telling
you all this after reading any book.
This is practical knowledge. Kill these three words like karlenge, dekh lenge. If you
are taking the order, then talk to them now or in writing on documents like what
is the rate and what is the discount and when you will receive the payment. Credit
terms are there, credit policies are there, whatever is there just do it in writing,
even if the payment terms are there.

Do it in writing and not like karlenge, dekh lenge. He said that sir, my payment
term is of 3 months and you said mine is of 1 month and he said ‘we will do, just
send the product’ and the payment term is not decided yet. When you asked for
the payment, he said ‘I told you for 3 months’ and you said ‘what I said was for 1
month, and nothing was settled. It was like ‘will do or will see’, ‘no write it now’.
That time you will face some issues but you will become free for the future and
you will be tension free, trust me on this right.
 Principle - 03
Don't buy products on credit

My Dear Champions, the third principle is very-very important. I am going to tell

you that if you work only on this principle then your cash flow will be almost
normal. Yesterday , I had a meeting with someone - actually he is my participant,
so there his challenge was that we are doing business in the market, like we are
doing business from last 5-6 years but our pockets are always empty, we don’t
have funds ever and we are not able to make the payments on time. Every week
and every month we have to arrange for loans. Profitability is not there and we are
paying the interest, not understanding where the profit is going. So, after looking
at everything the problem which comes out is that this is today's principle only.

Trust me my dear friends that it is a very-very important principle. Principle is

that when we are starting the business in the market or in India and most
importantly in B2B, because in B2B there is one problem that we have to sell on
credit basis, yes and the mistake that we are making is that we start the business
and we approach the clients and we go to the clients and obviously we have to sell
in credit. What mistake we make is that we took the product on cash from our
vendor or we took it on one month credit. Isn’t it like that only?. We took it on
cash or on one month credit from our vendor and we sell it on 2-3 months credit
basis.

This is the biggest problem of the industry like whenever you will take it from
your vendor in cash and sell it to the clients on credit or you took it from you
vendor on 1 month credit and are selling it to your clients on 3-4 months credit.
Trust me how large or how big the business you do but your pockets will be empty
only because you have to fill the gap of 2-3 months and that you are always paying
it from your pocket. That gap will never fill.
What is the Solution ? The Solution is that from behind it is paid to you in 3
months and you have to give it back in one month or in two months. In any case,
the money comes to you in 4 months and you have to give back your loan in 2
months. If you can make this shift happen, then only your pockets will be filled
and your business will be profitable otherwise you will not get the profit.

This is my word and my statement to you, how much business you do but at the
end of the day your balance sheet will be zero. Maybe the work is going on with
the turnover’, like the turnover is more and all; but at the end of the day when you
will calculate, then you are not getting the interest of your capital even.

In that one more problem comes, like we gave credit to the customer for 2
months, suppose the products are of 10 lakhs and it got due and 2 months are over
and we go to take the payment then what customer says is that ok, I will give you
to the next week. It is very easy for him to say ‘next week’ and we also trust that
ok he is telling only 1 week, in that case he has already requested time for more
than 105 days, while the committed time was 60 days and more than 1 week.
Means he asked for 10% more time. We were delayed more.

We went there next week then what he did was- he did the partial payment of 2-3
lakhs or 5 lakhs, the bill due was 10 lakh and he gave 2-3 or 4 lakhs and we took it
happily. He even gave more orders and we also sent the goods. The meaning of
this is that your payment got stuck for 5 to 6 months. Because he gets to know
that you are satisfied by taking 2 lakh rupees or 3 lakh rupees as a partial payment
from the whole payment in 2 months.

This thing got proved at the time when you take the money that you are ok with it
and he can give the payment after some time. If you would have shouted there and
you would have said no that time only that the commitment was for 2 months and
you want the bill cleared, then they would have understood something but this
doesn’t happen and no one does this. I haven’t seen anyone doing this. Those who
are doing this, they are getting profit also.
So the other problem is that we talk for 2 months of credit and when we go for the
payment then they commit for next month, when we go to the next week then
they give partial payment and also give the next order. So, what happens is that
we are paying back money to the vendor in 2 months and we are receiving our
credit in 6 months and because of this the pocket is empty and it will always be
empty.

If you shift it from the vendor, you are taking on the credit of 4 months and in
front you are giving on the credit of 2 month or 3 months. This principle states
that I want my payment done in 2 months. Then only your pocket and your bank
will reflect otherwise it will not reflect.

Now, some people are asking how to take credit from the vendor for 4 months.
There is a very easy way that gives first 2-3 payments on time to the vendor or
before the time and then slowly-slowly try to increase the credit limit with him.
If, now the time limit is one month then give 4-5 payments on time and tell him
that from the next month we want two months credit, he will give you because he
saw that you are a good customer and gave the payments on time.

This goes for 3 or 4 months like vendors are ready to give you on credit but you
are asking for the credit or you don’t know the way. You make their first payments
late because your payments are coming late. And you stop getting products on
credit from the vendors. If you want to get the products on credit then there is
only one way that gives them their payment on time like you credit limit is of 4
months or of 6 months, whatever the credit limit is, give them the money back
one day before the credit time limit. Then only you will get the products on credit
and you will also get the best quality material.

So, this is a very important principle, you should understand this.

 Principle - 04
Features Of Bad Paying Customer

Hello! Welcome to the 4th principle of the series of how to get your payments
always on time.

When we don’t receive the payments from the market then we think that this is
the problem that the payment is not coming. But this is not a problem; this is
actually a result of that action we had taken months ago. I will explain.

Payments are not coming is not a problem. It is the result of that action and of
that decision which we took 4-5 months ago. We gave the products to the
customer who is a bad payer. Tell you again just close your eyes and I ask you to
do the same activity in my seminars and the result which comes out with this is
amazing. Just close your eyes. It is a request; like if you want to understand the
strategy you have to close your eyes. Now create the image of that customer
in your mind like in your sense, who is your worst paying customer and who is not
giving you the payment. Now, remember that day when you had met him for the
first time or gave him the product for the first time. What you had seen in him
that you sold your goods and services to him or sent him the products, what did
you see in him!

When I ask this question in my workshops, the participants tell me that sir, we
had the sales pressure and he was very good in speaking or he came with
someone’s reference and he was saying big-big things like he has a big shop and
all like that they tell.

So, what point comes in that or the solution of this is that do not hurry while
making your new customers. Be very-very careful while making your new
customers; this is the only solution for this. This was the principle which I wanted
to share with you today, this is a very important principle.

When you or your sales team go to make new customers that time do not
hurry, do your complete satisfaction that this is not a bad paying customer. There
is one of my videos on which I have shared “ 17 features of Bad Paying Customers”.

A bad paying customer leaves some signals or gives some of the signals when he is
meeting you for the first time. What are those signals like he will not talk to you
about the rate, he will not talk to you about the terms, will tell you to send the
products early like this some of features or signals he leaves. You have to
recognize these signals and with your gut feelings you have to check him on
metrics, if he is a bad paying customer or not.

Do not hurry and if you will see the earlier graph, why your payments are stuck
then it will come in front of you that you hurried in trusting the bad paying
customer. In-fact they were giving the signals that we are bad paying customers
but still you trusted them and sent the products.

So, Again telling you that the payments which are coming late is not a problem,
you should understand that payment which is coming late is not a problem but
this is the result of that action and that decision which you took 6 months ago
when you sold the products to the bad paying customer.

Am I right or wrong? Right, perfect.

 Principle - 05
HOW TO DEAL WITH NEW CUSTOMERS

Now, we will discuss the fifth principle to “how to get the payments on time
always” and the principle is ‘How to treat your New Customers’ ?

How to treat your new customers, what is the meaning of that is like we got the
new customer and we sent the goods and services to him, now how to collect the
payment from him! Usually what happens in the market is that you got the new
customer and he gave the order of 1 lakh to you, you delivered the products to him
and your payment terms are of 1 month or of 2 months and in these 2 month, he
took products 4 times of 1 lakh, 2 lakh, 3 lakh more or whatever. He also knows
that you are new and he is also new and you will give him the products and with
this thing the bad paying customer will take the benefit from you that
whatever the products he can take- just take it.

The one who is an Alfa Customer or who is a good customer, he will not do this
because he knows that he has to give the money but the one who is a bad paying
customer will take the advantage or benefit of this technique of market like will
take benefit of this weakness. And your weakness is that the new customer fills
the product at his place and you just give them the product.

No! You don’t have to do this. This is important to how you treat your new
customers. The most important thing in this is that you have to go by bill to
bill.
First technique of this is that: what is bill to bill, it is that on 1st of January you
sent the product, for example the dues are to be cleared after 2 months like the
due is on 1st march but in between he again asked for the product like I want
more product then tell him first clearly that ‘sir, we will check your first 3 to 5
payments’ like how they come. Then after that only, we can increase the limit.
What we think is that ‘thank god we got a new customer’ and just send the
product because you have a lot of stock and you have to empty that also and so
you sent the product to the customer but you don’t have to do like this.

Like you have so much stock but that is your hard-earned money and you also
have to give money back to your vendors. You took loans and you also have to pay
the interest, so don’t do this. I made the same mistake a lot of times and I was
always at a loss. These are the principles which are not becoming just by
imagination only, all these are my experiences, ok.

So, we have to check the first 3 to 5 payments of a new customer, if that is ok and
he is doing the payments on time then also you have to increase it slowly and
gradually.- It is not like first payments came well so you will give the products
and just open the limit. No! Slowly you have to increase and gradually you have to
check, first the tactic is go by bill to bill; if you are not able to go by bill to bill then
do one thing, take weekly payment of 20 to 25% or 15% or whatever your term is
set, like payment is of 1 lakh and due after 2 months. Then tell the customer that
we will take 10% of the amount every week; what happens with this that in 2
months you will get the payment and also you will be able to check, what is his
routine of payment-he is good at payment or not and balance payment will also
come and you can give him more products also.

So, these are the two ways that you can implement either bill to bill or take 10%
from him every week like on the first day or on the first week when the goods are
dispatched. Please open with him about this in the first meeting only, if you will
go to him later, then he will say what is going on and you didn’t tell me earlier. So,
clear this to him in the first meeting when you are selling the goods to him that
our payments are to be done either on due date or bill to bill.
You have to pay, if you ask for more goods then we will take the previous bill
payment first; else we will take the payment 10% per week. Like if the payment is
due in 2 months and if the payment is for 1 month then we will take 25% per week
or so. You will get to know what his payment cycle is like; if he is a good payment
master or not. Those who are bad paying customers, you will get to know about
them in the first 2-3 months. How good they are or not. The one who is an “Alfa
Customer, he will give the payment on time.

So This is the fifth principle which is very important. When you start dealing with
a new customer just don’t fill him with the goods only, you don’t have to make
your shop empty and fill him only. Slowly and slowly you have to start working
with him. Show him that you have scarcity of goods, you don’t have goods.

For this I remember one more point that this was Colgate scheme as I told you
earlier that what was the Colgate scheme? It was that when it got started
from Delhi and when any of the customers asked for goods from Colgate then he
asked for the 10 cartons and Colgate gave only 5 cartons. So what is the meaning
of this, meaning of this is that they have the scarcity of goods, as if they don’t have
the goods, and the supply is less and the demand is more and the customer has to
give the payment now, if he wants the goods because the supply is already less.
And what you do is if they asked for the 10 then you send them 15 and he is not
able to digest that also. We do the reverse thing so that our payment
also comes late; ok so try the Colgate scheme. Whatever the order you receive;
send them less goods plus whenever you get the new customer just don’t fill him
with the goods. Do it slowly and slowly and check his payment routine. So, this
was all for the fifth principle.

Bye take Care

 Principle - 06
DO NOT LET THE DEBT GET OLD

This principle is – ‘Do not let the Debt get Old’. Meaning of this is that your
debt or the money which you have to take from the market, don’t let it get old and
don’t neglect it. For example: in the market from party x, you have to take 2 lakh
rupees, ok. Now when you started the business, the customer who was a bad payer
, did big-big and good talks and you sent him the goods and the payment didn’t
come. Like you fixed payment terms for 1 month and the payment didn’t come.
Now 2-3 months are already gone and he is not giving the payment. You did the
follow-up like it was 2 lakhs, some of the money came and some didn’t come and
in the last 1 lakh rupees were left and 6 months have passed now.

Earlier, you were doing follow-up regularly like once in 2 or 3 weeks because you
were also seeing that he is now an old customer and you don’t know the money
will come or not and I will put this in bad debts. No! The older he will become, the
more difficult it will become to recover the money from him. 6 months, 7 months
or 1 year, the longer you stretch it, it will become that much more difficult to
recover the payment from him.

Do not let the debt get old, keep it refresh. The science of this is that when you
come to know that he is a bad paying customer and you get to know that he is a
bad paying customer that time only you take the strict action. Strict actions are:
as I said in my courses, number one- ‘dear uncle strategy’ like send to the uncle, if
the work is not getting done, then number 2: ‘MSME strategy’ like talk to the
consultant. Through him you will get the payment. If you don’t get through him
also then the 3rd is ‘recovery agency’ and then also money is not coming then the
4th is ‘legal’. But out of these 4 you can implement any of the policy but do
implement it and let it be.
You are Calling and your team is Calling and you are getting lazy in doing the
follow-up then you forward the case and their work is to follow-up daily on that
case. Like it is an agency or amesamer or it is legal, so their work is to follow-up
with them. So, give the case there instead of telling him. Trust me, you will get the
result, whoever the participants who joined me, they followed this only. They were
asking for the payment and now they have forwarded it to the agencies and all
they were following- up with him and they started getting the result. So, do not
let the debt get old. The older it will get with time, it will become more difficult to
recover it.

Check your balance and check your accounts that your debts which are older
than1 year or 2 years, it is very difficult to recover them. But yes, there is a policy
or strategy to recover them. Refresh the debt, call them then forward it to the
agency or legally, ok and the work will be done. Let me tell you the good news, if
you go through MSME. There is no time boundation that your debt is 1 year old or
2 years old or 5 years old. The condition is that you must be registered in
MSME. If you are registered in that portal, then there is a chance that your case
will get solved easily. So, this is all about the 6th principle.
 Principle - 07
How To Deal With “C” & “D” Category Customers

This is the 7th principle “How to get your payments on time always”. As I told you
there are four types of customers : Alfa, Beta, Gamma and delta. Alfa and Beta are
good customers like Alfa is the best one, Beta is the normal one and Gamma and
delta are C and D.

Your C and D clients like your Gamma and Delta clients are not giving you the
response. You are doing follow-up for the payments and they are not
answering your calls and you are going there or sending someone there and
they are not entertaining you or they are ignoring you or something like that is
happening, So, this principle tells if your Beta, Gamma and delta customers are
not responding, then don’t waste so much time on those customers. Instead of
following them on your own, just transfer the case to the legal or agency or MSME
portal as I told you earlier.

There are 5 to 6 ways how your payments will come. First Alfa customers will give
you the payment on their own as they are good customers. After then your team
does follow up. Then I told you uncle's strategy. After that MSME solution or
agency is there. After that legal measure means advocates are there. So these are
the ways to recover the payments. Some more ways are there that is the police
method but I can’t tell you that in the video, So if your payments
are not coming from the C and D clients and you have to do a lot of follow up, then
do not waste your time on those clients, just transfer that case according to the
time. If it is too old then it will go to legal directly or it is little less old, then go to
MSME or go to agency or transfer it to legal and all.
Don’t waste your time there otherwise there is no way to get your payments
because these D clients will not give you the payments. Invest that time in
acquiring the new clients. And how to acquire the new clients like first you have
to pitch them. You don’t have to give them the goods directly. Initially, you have to
research and give them small-small quantities of goods and first you have to
check their payment system.

So, this was the 7th principle of how to get your payments always on time. Let me
tell you that it is so long as we all are facing this like will correct it now or it will
get better now and all. We suppose that we will get the new customers now and
will not do all this like earlier but no it doesn’t happen. So, you have to systemize
your payment recovery engine, you have to hire some systems and you have to
keep them. Otherwise the payment recovery will not get better.
 Principle - 08
Reverse Your Payment Model

Let me start with principle number 8. Principle number 8 tells if you start your
business with the loans or you are taking the loans to start your business, means
the funds you are taking from the outside like your capital is less or no capital is
there. After taking these loans, if you sell the goods on credit then it is a flop
model. This model is not going to work for you.

I will give you an example: in my close connection what they did is like-5 years
back they started the business of garment industry or in textile industry. They
started the business after taking a loan of 1 CR. With that money they purchased
the goods on advance payment basis and they sold those goods on credit basis in
the market and they thought that we have added our margin in
this and the payment will come and we will recover and will pay the interest, but
the market payments are late, and they came late only. Then afterwards, money
demonetization also happened, sealing happened and then Corona existed. So to
pay the one loan, they took more loans and they again took more and more loans
because they were giving the cash payments to their vendors and they were
selling in credit So this was a flop model. His business is now going
to be nearly closed.

Why am I telling you this! I am telling you this because you don’t have to
start your business with the loan. You have to gather your own capital, In-fact I
have told you earlier also. I made a pani-puri model. Pani-puri model is that the
one who sells the golgappas , what he does is that he takes all his material from a
grocery shop, like whatever it is: sooji, flour, potato, chick-peas and all, and from
there he has taken everything on credit because he is taking it every day and he
made the goods and he puts his counter and then sells the good in cash.
Almost all Pani-puri vendors, you must know that, they finish everything till night
and everything gets sold.. They are selling in cash and their model is that they
take in credit and sell in cash, so that their pockets are always filled with the
money. They earn so well because they are taking the material on credit and
selling the goods on cash and they do not have any tension. What our model is, it
is a reverse model like we took in cash and we sell it on credit and
the material which we are taking on cash- that money is also coming from the
bank. That also is not our capital. So, that business will close today or tomorrow
because you will not get the payments from the market on time and it will not
come because now it is a trend that payment will come late only because you don’t
know the principles of how to sell the goods and you all get stuck.

So, we have to reverse the model like it should be your capital and if you don’t
have your capital then there is one more way that you take goods on credit and
sell it on cash or take the goods on 2 months credit and sell on 1 month credit or
take goods on 3 month credit and sell it on 2 months credit, something like that. If
this is the model then it will be a success. In this you don’t have to arrange the
payments every month and you are doing the reverse thing, because of that
you have to put the capital in your business every month. See the complete
system is in front of you. So, principle number eight is that you have to reverse
the model like you have your own capital or take the goods on credit and sell it on
cash or take goods for 1 month credit and sell it on 15 days credit. You have to
work like this then only this model is sustainable. Otherwise you are taking goods
on cash and selling it on credit or taking goods on 1 month credit and selling on 3
months credit then this model is also not successful. Your business will need
money every day which you cannot do.
 Principle - 09
MSME Or UDYAM Registration is Mandatory

It is very necessary for you to take the MSME registration number. If you are
doing the business in India, then you have to have MSME or UDYAM registered, it
is one and the same. It is very necessary that you get registered if you have to
receive the payments through government portals.

I will tell you how. You are a manufacturer, trader, supplier, distributor or
anything; some new amendments have come in the bill, MSME Act in which they
have covered everything. You can ask your accountant who is not covered in it but
almost everyone is there. 99%, every business owner in India is covered under it,
even if you might be selling goods worth one lakh rupees or be it one crore or ten
crores; you are covered under it.

Now the point is that if you are not MSME registered then you will not get the
facilities of MSME. If you have to take the payment from anyone and you are not
MSME registered, then you cannot take the benefit of this government portal.
If you are, then you will get a lot of benefits. I will give you one example. MSME
Act says, . If the opposite person is not giving you the money in forty-five days
then he will have to give compound interest and that too three times more than
RBI’s interest, as written in this act. Apart from that it is written in the act that it
is the responsibility of MSME council that it has to, whatever case you have
lodged on that portal, it has to be solved or the result has to be awarded within
the duration of one year. He has to anyhow give the payment.

Let me Explain what more is given for you in this. MSME Samadhan portal enables
the MSMEs to directly register their cases about late payments against the buyer
of goods / services before the Micro and Small Enterprise Facilitation council
(MSEFC). You yourself can put your case on the portal.

Now it reads like this-

‘Micro Small and Medium Enterprise Development or MSMED Act, 2006 (Act)
includes provision that deals with the cases of delayed payments to Micro, Small
and Medium Enterprises (MSEMs). According to these provisions a buyer is liable
to pay a compounded fine, if he or she fails to make the payment to the supplies
within forty-five days from the day of acceptance of the goods and services. This
fine is compounded monthly on the amount of three times the bank rate notified
by the Reserve Bank of India.’ Means he has to pay three times of interest if he
does not clear your payment.

The important point is that if you are not registered under MSME and if you
register today, like today's date is 22/09/2022 , then the cases before today, if any
payment dues are there, then those cases you cannot file under the Act. You
cannot register those cases on the portal. This is your loss, a big loss. It is
mandatory that you today only register yourselves on MSME and if from today
your payment is due anywhere, then the act and the portal will help you but
before today your whatever payments are stuck,this act cannot help you. That is
why it is very, very, very important for you to get MSME registered. You do it
today itself, don’t put it on hold.

Apart from this when you will get MSME registered, you will get the MSME
number, then you can write the MSME registration number and also write it
necessarily on your invoices, as by mentioning, it makes the difference altogether.
It makes a lot of difference in the mind of the opponent that this company is
MSME registered. So, that also helps you to get your payments on time. Apart
from that if any of your payments is stuck or gets delayed in spite of being
registered, then you yourself can file your case on the portal.
It is very easy.
You can google it. You can see it on Youtube-‘How to file a case in MSME
Samadhan portal’. Everything is given there on how to file a case? It is very easy.
Else you can also hire a consultant for this. They also do your work.

So the point was if you are not MSME registered, then it will be very difficult. The
government has tightened the noose for the people who do not give the payment
and it will be further tightened but you will get all those benefits only then, when
you will be MSME registered. Else it is very difficult. And many benefits are there
for being MSME registered, like you get the loans with very, very low interest
rates. And you get many loyalties, you get many rebates. Lots of benefits are there.
But the main drawback of what we are talking about is- if you are not registered,
then you cannot file a case against your opponent on the MSME portal. Then it is
like that option is totally closed for you. Then what remains with you is the only
door of delay. Then you have to go legal; MSME is closed for you. So right now get
yourself MSME registered. Tell your accountant to get you registered.
 Principle - 10
How To Get Your FDs Back

This is the tenth principle. Previous nine principles are very, very fruitful. Let’s
start with the tenth principle. The Tenth principle says that “Get your FDs back”.

What is the meaning of this? When you connect with a customer, for example you
give the goods worth two lakhs to him. Now the bad paying customers are there,
they have one habit that - they give the first payment on time. Or they say that
you take this partial payment for the first payment. They pay it on time. This is
their one bad signal or it is their habit.

Like you supplied the goods worth rupees two lakhs and they paid you well for the
first time. They gave you the first few payments on time. You become happy and
think that this is a good customer and you supplied more goods and they gave you
payments. You supplied more goods and they paid you less this time, but then also
you gave them the goods and by doing so fifteen to twenty lakh rupees are due
balance on them. Fifty lakhs are in balance, and they have slowed down your
payments.

This was their strategy to get your money invested in there. They find people like
you around them in their network. So, now what has happened is your fifty lakhs
got invested, fifteen lakhs or twenty lakhs are invested and you are demanding
from them and they are not giving and they are sending new orders every month
and you have sent those orders because if you don’t send then they cut off all the
payments totally. You fear that if you will not send the goods, then you will not
receive any payments at all. Like this is happening.
Trust me, when I talk to business owners, all have got stuck into this trap. All of
them! What are the solutions for it! I will give you four solutions for this. You have
to See yourself which of these four solutions you can implement in your business.
All this dead sure payments come for sure. First try to understand that if you fear
that your payments might get stuck, if I will pressurize or I will go legally, or I will
do something, then payment will not come. This is your illusion. I have solved
many cases of mine.

I have done it, I used to make the bills and my participants' payments also come;
the condition is you must have sold the goods on white paper, on invoice, on bills.
It should not be in raw form or it should not be sold in cash. You face more
difficulties. Today I will tell you four strategies, the first one is this. How to get
your FDs back. 1 They have done your FD, and they are getting the interest. How to
get that FD back.

First point- From today you have to do one thing- whatever payment comes from
them monthly or weekly, you have to play a 100:80 ratio game. What is a 100 : 80
ratio game?

If hundred rupees come then you have to give them goods worth rupees eighty.
You have to tell the world that brother I don’t have the goods only. There is
scarcity of the goods. What we do is we have a lot of goods and you know we have
to send the goods. You yourself call the world and ask, ‘Can I send goods? ’No! This
is the science of sales. Tell the world that you don’t have the goods.
You have the scarcity of material.

But what you say we have lots of goods, lots of goods, come and take. There is no
value for you and your goods. So you have to tell them you are short of goods. It is
coming less from the back, as it is the time of covid or whatever you want
to tell, tell them. But we have to play a 100:80 ratio game.

If hundred rupees come then also goods will go worth rupees eighty only. Okay,
send sometimes eighty or sometimes eighty-five or seventy –five. Means what, if
one lakh rupees come then goods worth eighty thousand or seventy-five or eighty
thousand only are sent.
Not above this. Average should be maintained at eighty. Over the period of time,
one is that the value of your goods will increase and second your capital that you
have invested for it will come down slowly.

Now the strategy number- two. Tip number two. If he is from a locality then you
have to call him to your office or you can go to their office. You have to tell him
four golden words. Read carefully.

Like his name is Guptaji or Chawla ji, any name can come. You have to join
your hands and say, Chawla ji ‘I need your help’. Four golden words you have to say
by heart. I need your help. I need your help. He will ask what you want! You have
to tweak this little bit. Listen carefully. ‘Sir, I am buying one big piece of land. I
have given token money for it and I have to make the payment for it and I don’t
have the money. I need your help. You have to give me this much money, but from
that you give me some amount of money from that. Or ask for extra money. You
have to give men ten lakhs but I need your help today. Give me twenty
lakhs, anyhow. I have to make the payment.

Now here you can make out the excuse that I have purchased land, machinery or
there is a marriage in the house or there is some work in which a large amount is
needed. You have to tell him that. Try to tell him the truth. If you have taken a
land, really machinery is taken in reality. If you will speak the truth; then your
voice will come from the heart. So you have to tell him that I need your help, that I
have purchased this land, it is costly, I need your help, I have to get money from
you, so I want that money plus I want some extra and I will give you goods for that
in exchange for it, don’t worry. I will send you goods for it.

He is also cunning. He will say that you are fooling him. Maybe he will give you
less amount or deny it. But if you insist to him that I need my money, mine money
it is and I need it, and do the follow-up for it. It is seen that in many cases you
receive money from them. Good amount is received okay. So try this. This strategy
you will have to tweak it a little bit according to you but it works.
Now the tip number- three. Tip number three says that if you have to receive ten
lakhs from them and what they are doing is they are giving you orders for every
month or every week and they are giving money also. Now you have to tell them
that ‘you have to give me ten lakhs but you are not giving me. It’s been pending for
a long time. Whatever order you will give me per week or per month, I want the
amount to be paid for that completely on per month terms only and plus the last
balance which is going on, I want ten percent extra for it. Then I will work.

Otherwise I will not work. I will say it again. The goods that you will give him in a
month, fresh payment you will ask for full and will not accept partial payment by
mistake also. This all work has been damaged by partial payment only. Partial
payments are not accepted in business. Don’t accept. I will tell in One separate
chapter afterwards. Partial payments should not be taken. The goods which
are given, you have to take the repayment plus the last balance which is going on
as FD; in that ten to fifteen percent payment you have to take extra then you will
do your work correctly.

Now in any scenario, I have told you three tips. if he acts cunning. He will give
excuses, he will act over smart; and then you have two tools with you. From here
sure shot payments will come. One is the MSME Samadhan portal and the other
one is legal. Now I strongly believe that when you started your business with him,
when he was good with you, you gave him goods, he gave you payment, you
supplied the goods to him. Doing like this there was a big debt created and now he
is not entertaining you. Even now if you will act like this further, his one lakh
rupees are due and you are sending him five lakh worth goods at one point, after
one year you will have to recover fifty lakhs from him.

Don’t do this. That day you will repent, instead you repent today. That day you will
run here and there, instead you do efforts today only. But don’t give goods for
partial payment. How much payment you receive, you will send goods worth less
than that.
Always remember this thing.. Now what you will do is- whatever excuses
he will give you, however he may harass you, saying like this is like that, he is
acting over smart, he will ditch you; you have two tools, one is MSME Samadhan
portal and one is legal debt recovery lawyer. You have to file a case against him on
the MSME Samadhan portal. If you are registered on MSME, then only the case
will get filed. Trust me MSME has centers. There are deadlines where they have to
give you the results within one year at any cost. Many good results are
coming from MSME Samadhan portal.

Second, if you cannot go there, then you have one more handle, debt recovery
lawyer. Hire an aggressive debt recovery lawyer in your city. You give this case to
him, the case which is pending. You only do the follow-up of that. But don’t send
money there. If you want any help on this, debt recovery cases are there
maximum, minimum results of it do come in one notice itself.

If the opposite person is doing the business and from here if the lawyer sends one
good notice to his residence and his office, then at the first notice only you will
get his call that Sir, come and speak to me. Why did you send the notice? Let’s
talk. Else the cases in legal take minimum one month or maximum three years and
the results for it comes. And payment received is complete and with interest.

Trust me, okay. You have these handles with you, so don’t fear and take the action
but bad paying customers should be identified. Bad paying clients should be fired
from your customer list. Don’t send them more goods, otherwise your hard earned
money from where you earn it goes to them only. Don’t do that. You are giving
bank loans, you are giving installments, -this loan, that loan, this loan, you are
paying the installments and you are giving them. They
don’t give your payment in total. Don’t do this.
 Principle - 11
Do Not Take Loans & Sell Goods On Credit

If you tell clients that I will take my payments in thirty days. Then he considers it
thirty to sixty days on his own, easily as it is. That he will give in sixty days. This
only happens right ? So, because of this problem, because of this difficulty, what
we have to do is, we have taken many loans.

Why do we need to take loans because we are not getting payments from the
clients? Payments from clients are coming but our expenses are there that are
still there as it is. Our office rent is there, our team's salary is there and other
expenses are there, household expenses are there, installments for vehicles are
there or some installments are there, the loans that we have taken, for that
installments are to be given. Vendors are giving us calls repeatedly as we
have to give them their payments. So, here there is complete pressure of giving
them their payment and from here the payments are not coming. What we do is to
make this pressure temporarily okay, we take more loans. Initially one or two
loans were going on, to move the circle of this payment, to generate the cash flow
some more loans or OD limit was opened.

Now understand this thing that you got OD limits, you got loans. You applied for
10 lakhs or 20 lakhs loan and you got the loan and the loan is sanctioned and
comes into your account, in your current account, now 20 lakh rupees have come.
Now we have twenty lakhs with us and now you are doing your normal actions.
You are doing your daily selling. Your man went to sell you goods, or for providing
services and he sold goods to such a client who was a bad paying customer. He
couldn’t identify it. He did not know the filter.
You or he has sold goods to such a client from whom payment will not come or
will come too late. He brought the
order. Now the order has been brought and to complete that order you need one
or the other raw material.

You have to get the goods manufactured and you have to execute it. For that you
have withdrawn money from the bank. Let’s withdraw the money as we have to
manufacture that goods and I have to execute that order. So what we did is the
order was of two lakhs and we withdrew two lakhs from the bank and you convert
it into the goods. Maybe you ordered raw material, you invested your efforts, you
invested your services, you manufactured those goods and sold the goods of two
lakhs to such a customer from whom you are not going to receive the payment. Or
it is going to come very late. He is a bad paying customer.

What is the meaning of this? We took one loan and that loan came in our bank and
we withdrew that loan in cash and converted it into goods and gave it to such a
customer from whom payment was not going to come. The meaning of this is the
loan was converted to goods there only. The money was in a good place.
The meaning of this principle is- you should not take loans and sell for credits. If
you feel that we will earn margins, we will keep two percent extra above it-
interest cost, this cost, bank cost we will charge and then sell the goods. However
smart you show in this! Even if one client is defaulter or runs away or something
happens; he will take away all your efforts and like this happens too and you have
to repay that loan from your own pocket. So selling goods for credit by taking
loans is foolishness.

Today’s principle is not to sell goods for credit by taking loans. You took a loan and
converted it into goods and sold it there from where the payment is not coming.
Don’t do work by taking loans.

I will give you an example. In earlier days, like thirty forty year back, what people
used to do is, they never used to sell for credit. They used to sell very less or
rarely. How did they sell? I had spoken to one gentleman who was a business
owner. He was a little elderly person.
 I asked him how things are. What used to happen earlier? He told me that earlier
when any client used to come to him for buying the goods, he never used to give
any credits. Never to give credits. Client came, he purchased goods worth two
lakhs, gave him goods for two lakhs, in that two lakhs he earned twenty thousand
for example, with ten percent, so what the elderly people tell us that he did like
this ten, fifteen, twenty twenty-five transactions with him in two or four or six
months, and after six months we ourselves earned five lakh rupees and after six
months we opened a limit for five lakhs for him.

Now the customer will get the credit for five lakhs. This is his limit. If he runs
away also or is at default also then whatever he has earned that money only will
go with him and it will be not our loss.

So, they used to implement this therapy at that time. But they never used to make
this mistake. Why now-a-days there are a lot of means everything is going wrong.
Why now-a-days only people are becoming defaulters, why not in earlier days it
was like this? Why not earlier and why only now it is because we are greedy for
the sale. Obviously I agree that now the competition has increased, givers are
more, customers are the same or decreased, they have moved online. And there is
no alternative with you apart from selling goods to them. You feel it.

You are correct at your place but this is not the method. It is best rather than
selling goods to such a customer, there is this saying that instead of regretting by
selling the goods, regret by not selling. I repeat. Selling goods and then regret, it is
better to regret without selling goods.

So, again once again, do not distribute your goods by taking loans. Don’t give
goods for credits by taking loans.
 Principle - 12
Service Charge - INR 500 (The New Marketing Strategy)

Either you take five hundred from the customer or get marketing done from him. I
will tell you the meaning of this. One participant who was from my June batch
Sumeet Patel ji. Sumeet’s business is there in Ahmedabad, of producing surgical
instruments and medical equipment. Means it is a big unit I think. He is
manufacturing medical equipment, patient chairs, special chairs for Doctors. He is
producing something like that. Although he is my mentee, he is my student but I
got so much information from him. He said this is a very important point that I
got from him which he told me.

There is one term. You have to make loyal customers, not repeat customers. You
have to make long term loyal customers.. What is the repeat customer? He is like
taking goods from you repeatedly and if he does not get them from you or if you
increase the price a little bit then he goes to some other place. He will buy from
some other place.

But the loyal customer is one who will wait for its opening even though your shop
is closed.. He will not buy from any other plakhse. Whatever happens, whether
price is more or less, whatever you say, he will buy from you only. This is called
making loyal customers. And I was giving you an example of Sumeet. Sumeet ji,
said that Sir, I, get my marketing done at the backend from my customers only.
How? I don’t take small charges from my customers. My work is machinery, I send
the machinery to the customer. If they face any technical problem, I clear it
online. I don’t charge them for that service. If some other difficulty comes- I send
my person there. If it was some small problem regarding the service, he repaired
the nut and I do not charge money for that either. The impact or reward for not
charging money for this is that customer does advocacy for me.
Doctor’s machine is not working. My person went and repaired some small fault
and no part was used also and he just repaired it. If I charge that five hundred
rupees, then he will pay for it. He will pay for it happily but he will not do
marketing for me. I did not charge the money for it, and only for this small thing
he will do marketing for me and it has happened like this also. One doctor is also
there, he is one customer of mine and I was not charging him and he helped me to
install my fifteen machines in Ahmedabad for other doctors. Doctors have their
groups. They keep talking among themselves. He says that I should look at that for
fifteen months. If I calculate the revenue cost then it might be above fifteen lakhs,
if I look at that fifteen lakhs or if I would look at that five hundred rupees that I
would have charged for service.

There is no comparison only-Five hundred to thousand rupees or fifteen lakhs.

And then that doctor is again giving more and more references. So it is the most
amazing factor. You have to make a long term loyal customer, like he had gone one
extra mile for this customer, and served the customer. Serve your customers by
going one extra mile. Stop charging customers for small services from the
customers. Some take a sample is, stop charging it. In fact, help him by going out
of the way. He will be your loyal customer for life.

This was told by Sumeet that Sir- ‘Customers do come to me who are out of
Ahmedabad, some are coming from Mumbai, Delhi, are coming from here and
there, from Punjab also, what I do is as soon as he lands at the airport, my car and
I meet him at the airport itself. I brought him to my office in my car itself. I have
the arrangement done for resting and freshening up in the office. They freshen up
here in the office, they rest, they have breakfast and for the full day I give him a
ride for the entire day and take him where he has to go.’

He has told very important, very valuable and very amazing things. He said that
‘Even if the client is going to my competitor also, I will take him along in my car. I
go with him. The moment I do this for him, my position is raised so much in his
eyes that whatever he does, he buys it from me only.’ And in between he also told
me that ‘I feed him Gujarati special delicacies.
As they come from outside and they are fond of Gujarati food, I feed them that at
my own expense or get it cooked from my home for them.

So by doing all this they become my loyal customers and my payments are never
stuck. In fact I get advances. What doctors say about me is that ‘we are giving the
number of brother Sumeet, whatever price he is saying, whatever price he is
quoting, buy it at that price. He is a trustworthy fellow.’ Like this they talk about
me. Whatever price I quote, they buy it at that price. Means I have not done
anything and they are doing marketing for me.

So, this was the most amazing, most powerful thought. It was such a powerful
thought that I got so much from it. Overall I was saying that you have to aim at
making loyal customers but this example that I got from brother Sumeethas done
wonderful work.

Thank you very much.

 Principle - 13
Start Saying “No” To Customers

If you give goods or services to the customer then also, you get stuck and if you
stop supplying goods or services then the payment gets stopped and then also,
you get stuck.

So, whatever happens, we are only going to suffer. We are the watermelon that is
going to get cut in both the scenarios. What does it mean?
I will tell you. I got one audio message from the participant from my September
batch. His name is Mohit. He Said that Sir, I dyed garments for one of my clients.
I am into the dyeing business, I dye his garments. And I have to recover
seventy-five lakhs from him. I have to receive seventy- five lakhs and whenever I
demand my payment he gives me some or the other excuse and on this account he
is making me do the work. And lakhs he has put twenty-five lakhs debit on me
saying that I have damaged his garments or some color used was wrong, and now
he is not solving the case. Neither he talks about it, nor he is solving that case. It is
still pending. So what shall I do, if do his work then in that case, I have to invest
the funds and money and if I don’t work then he will stop the payment and further
also he will stop It., What shall I do? I am stuck. So, I said that this is not a new
story.

People think that my story is unique and different. I am stuck but across India,
across the globe, this story is about everyone. That customer has got your money
invested, got FD done and now you are stuck. If you will give more goods to him
you will need more money and if you will not give him goods you will need more
money. If you will not give, he will stop payment. So, I told Mohit the solution for
this, you understand this participant, that the day you stop delivering him, what is
the solution?
The day you stop delivering him or servicing him, that day he will stop your
payment. I will repeat. The day you will stop doing his work or stop giving him the
goods, he will stop your payment that day itself.

If today seventy -five lakhs are there, remember two years back when less work
was done, it might be thirty lakhs or twenty-five lakhs, but in two years you did
not have the guts to stop his work. you did not get guts to say no to him, you kept
on giving him the goods, you kept doing his work. Now it has become seventy-five
lakhs. If today also you don’t take the decision. You have to tell, you are not going
to work further and recover the previous payment. You have to solve the previous
case and today also if you don’t say no, then after two years also you have to cry
for this that you can take in writing from me, it will become 1 Crore 25 lakhs I
repeat.

The day you will stop giving him the goods or services, that day he will stop
paying you. It’s your call, how much of your money you have to get stuck or
sacrifice today or after two years. What is an example of this? Check how much it
was two years ago! Is it less now?

Now what is the solution for it? Start saying no to him. Sorry. And sorry also you
have to say in a very humble way, in a sugary tone and not in ego. No, first you
clear the old balance, first give old payment, not like this.

Say sorry very humbly, very lovingly, as your money has got invested already.
Sorry sir, I am compelled. My ethics and system are not allowing me to work
further. I don’t have funds with me and the previous case is still stuck. From
where I will get the money! I am stuck, Sir. I have to take loans. I am very sorry. I
am compelled, Sir. Humble sorry! Sir. If you will not do so, if you say it in ego,
sorry or if you did not say only sorry, then mark my words, whenever you will
settle accounts with him or whenever you will say no, you are muskmelon and he
is sword, muskmelon will get cut.

Why? He has to give money. You are below him. Are you understanding my words,
then watermelon gets cut, so it is better today only you get cut. You will get cut
after two years.
So, you calculate in the accounts. Take out one figure and today he must give
money. Say no to him, get the previous debts cleared from him and then only do
his work.

If then also he is not agreeing and you have to do his work and if you
are doing his work for 1 lakh, Sorry if he has given one lakh rupees, then do the
work of eighty only. Over delivery should not be done. He has given one lac, you
gave him the goods worth rupees one lac seventy -five thousand, then again it will
pile up. Credits increase. No, he has given one lac. you will supply goods worth
rupees eighty or seventy only.Or do this. But the best for the time being is, say ‘no’.
If the amount is high, say ‘no’ to him and recover the previous account. Then I will
do further business. So, for this problem, I hope I have addressed it here.
 Principle - 14
Loan Leke - Udhar Maal Becha

I have met more than 200 business owners on one to one basis, in different cities.
Some are having mattress business, textile business, spare parts, logistics and
various kinds of business. People meet and tell me that they are not able to
recover the payment and they are suffering loss. When I check their business,
then I come to know that they are making mistakes. What mistakes they are
making ! There are many mistakes that they are doing; I will talk about one or
two mistakes. One is they have a lot of stock left with them, the profit that they
are making is consumed by stock. Secondly they are taking out loans to do
business. Third, they are taking loans, and selling material on credit and the
buyers are from other cities, and they are staying on rent.

Understand the chain, they are taking loan, and on that they are selling material
on credit to the customer who is from another city and you are not able to visit
that customer on a regular basis.

Third mistake is that he is staying there on rent. He was a delta customer, who
bought material from you and fled away. He took away material worth lakhs of
rupees from you and you have to incur loss in your business, and on top of that
you have a lot of stock in hand. In other words, stock inventory is cash that is
there with you and it is getting old.

I strongly recommend that you don't sell on credit if you have taken loan and if
you have to sell on credit then take it for a longer term, if you have to sell on
credit for longer term then don’t sell out of the city. That person should be from
your city only and known to you. He should have an office or shop of his own and
not on rent. Just understand this chain.
Secondly, you should not keep stock with you. This is not that stock which is
money. If you sell that then you will make money. This is a long story. I will share
it sometime later.

Only this much for today, just understand that chain, don’t take loan and sell on
credit, if you have to sell on credit it should not be for longer term, if you have to
sell for longer term then it should be in the same city, so that you can visit the
customer. And if you have to sell out of the city, then he should be an alpha
customer- he should have a factory, shop, office of his own and not on rent. If he
flees away then you have to bear a huge loss.
 Principle-15
Business Loss Mein – Band Kar Diya (2 Baar)

Why is your business going in loss slowly?

When I spoke to my subscribers or participants and students, they told me that
they are not able to recover payment, and are facing xyz problems. When I
diagnosed their entire system, their business model, payment recovery model,
sales model, and appraises model, then I Came to know that not receiving
payment is one of the factors of business going towards loss. It is not the only
factor, it is one of the factors, why business is going towards loss. If you also feel
that in spite of working hard, you are not able to get profits. Why is this
happening, what needs to be done to come back on track, then this principle is for
you.

In my entire career, I have organized a lot of meetings. I will tell you 3 factors out
of many factors for business going towards loss. If you rectify these three factors
then your business will start coming on track.

So the first factor is taking loans for doing business, and selling material on
credit-this is the first factor resulting in losses in business. I know that you did
not have enough capital and had to take a loan, but if you would have sold material
in cash or on less credit then also you might not have incurred loss. But if you
took a loan and sold the material on loan for a longer term of 4-5 months, this is
the biggest factor of your business going into loss.You took loan of 1 crore rupees,
money got transferred in your bank account, you gave material to 10 customers,
and from these if one is a bad debt then he will take away your profit.
Second factor is that you have a lot of stock with you. Sometimes to give a good
variety to customer or if customer gives order then he should not have to wait for
that you stock material, or to keep your workers busy or keep the manufacturing
going on- you stock the material, and now that you have gathered a lot of stock, it
is a headache for you and the stock is becoming old.

Tell me one thing, just to make a customer happy, so that he does not have to go
empty handed, you filled the warehouse with 20 times the stock. Or to give work
to your handful laborers, you filled the warehouse with stock. Instead of doing
this, you would have said no to customers or labor. You have lakhs of rupees
stocked up now and if you calculate interest, its depreciation, and moreover it is
getting old day by day, so it is a dead stock.

Third factor is not receiving payment, you are giving material to people who are
from other cities and they are absconding with lakhs of rupees and therefore you
have incurred bad debts.

You wanted to sell more material so you sold them material without knowing
them properly and when you asked for payment, then you came to know about
their true face. And it was too late by then. I am telling you this from my
experience. Now what is the solution for this problem?

Solution is don’t take out loans and sell on credit for a longer term. Why do you
take a loan?- to pay your vendor or pay the rent. You feel that we will take a loan
and pay the vendor and rents, and we don’t have tension. No, this is just a comfort
zone. Come out of your comfort zone and recover the payments that are stuck in
the market and use that to pay salaries and rents.

First is don’t take loan, and if you take loan sell the material on less credit term
maximum for 7 or 14 days. Second, stop your production, stop filling material, and
try to sell out your stock. If I am making these bottles, I have 100 bottles I bought
by paying cash. These are cash we just need to redeem them. Anyhow you have to
bring your stock to zero. Just liquidate your stock and you become free.
Third, don’t let bad debts happen. Don’t let your payment go off. If any customer is
not giving you payment, you are in touch with him, go legal with him, send
notices, talk to consultants, but don’t let those bad debts go off. You have to sell
more lakh rupees of stock to cover those lakhs of rupees loss.

Because of these problems only, I had to shut down my business twice, I had shirt
manufacturing business, because of all these- the stocks, loans, and not being able
to recover payments, bad debts and I had no brains. I am telling you. ‘Thanks to
almighty god you are having a coach who is telling you what mistakes can lead to
shutting down the business. But during our time, we had none, not even YouTube.’

THANK YOU