Culture shock

I have been running my own business for the last 11 years. Until recently there were just 11 of us based in the UK, but we have just opened new offices in Europe with nine of the top people from our biggest competitor.

As well as the obvious national differences in culture, there is also a big difference in business culture. I've spent years fighting for survival against huge competitors who are several hundred times bigger than us, getting us to the point where we are now universally recognised as the global experts in our field, and doing battle with massive multinational clients who think they can push us around because they are multi-billion dollar giants.

I have seen enough industry 'big guns' crash and burn when they try to set up their own companies to be completely unfazed by these people - many of whom are no more than pseudo-businessmen with grossly inflated egos. My new colleagues, on the other hand, have always had the luxury of a guaranteed pay check every month, and take a much more subservient 'customer is king' approach. Last week we had a meeting with a huge client that we had last worked for a couple of years ago, and when they asked what discount we'd offer if we were 'lucky enough' to win the contract the new guys were a bit surprised by my response:

"If you give us the contract I assume it will be for one of two reasons: either we were the cheapest, in which case a discount would be unnecessary, or we were the best, in which case it would be an insult. Either way, there is no discount. Frankly, I'm astounded that you have the audacity to sit there and ask for a discount given that in my 11 years of trading yours is only the second company I have had to threaten with legal action to get my money out of: the first was a tiny three-man outfit that didn't have a pot to piss in, so you're not exactly in august company. And let me also disabuse you straight away of any notion that a small business like mine is going to beg and plead to do business with a huge multinational like yours. Overexposure to big clients who don't pay their bills is fatal to small companies, so before we talk any further about this project I need some assurances that you intend to honour your contractual obligations this time. If you do, we'll be happy to do business with you, but if not we'll be just as happy for you to take your debts to one of our competitors. And before you ask about discounts for prompt payment, we don't offer any. We work on the negative reinforcement principle: we don't reward people for paying on time, we punish them for being late. Last time we worked for you we were still chasing big invoices eight months after they were due: this time we'll pull the plug on your whole project far sooner than that, and leave you to explain why to your bosses. I don't want to appear completely intransigent though, so I am prepared to leave our late payment penalties at the same rate as last year."

We got the contract.

Well put.

I think you made your point.

Foreign business is in my opinion slightly odd.

I've been in the position in the past where we have gone over to see what they could do for us etc.

Once spent 4 nights in Germany on the lash every night with the pathetic excuse for a meeting each day and come back in profit

They wouldn't even allow you to buy your own cigs.

Having the responsibility for keeping a roof over other people's heads as well as my own has made me even less tolerant of bad payers. It's as though they think that the bigger they are, the more prestige attaches to their debts.

"There's good news and bad news, guys. The bad news is we've gone bust because we're carrying a million pounds of debt, and so unfortunately you're all now unemployed. The good news is it's a really big company that owes us the money."

This was most enjoyable to read purely as an example of good letter writing.

That’s such a joy to read I’m having to restrain myself from swearing- in the good type of way! I’ve taken a screen shot of it to share with some folk who will like myself entirely appreciate every word. We are regularly in a similar position and like you say the larger companies can be... well let’s just say difficult. I admire your chutzpah but wonder if it’s tricky finding a bike to ride with balls that big?!

Excellent [mention]MarkW[/mention] = keep the pressure on. I have seen so many small firms destroyed by multi-nationals and governments not paying their bills on time.

It pays to be straight to the point, unfortunately not everyone is, your much better being up front like that than pushing a problem further down the negotiating line.