Fake commitments cause disaster in business

This is the worst problem that a business can ever face. Most of the people only think about their own self but small entrepreneurs do not understand this. There are fake commitments from clients at various levels from the very basic work structure to work payout. One missed commitments starts a chain and it may go endless. Since start ups have never experienced this world and not sure how critical it can be in real business scenario they realize it very late and sometimes after getting hug loss.

For example a business employs 10 employees paid 10,000 each as salary compensation and other pays 50,000 in other expenses to run business.

There is a client who pays for services @ 150,000 per month and suddenly he start making excuse about payments. What will happen? The answer is simple: the business will get a hit if there is no backup money in account. The employees will get a hit as they will not be able to meet their financial commitments. Business runs on commitments and failing this may get a hit on brand value. Everything will get stuck and many small businesses fail due to this reason.

How to fight fake commitments

This may look very harsh but on a personal note use these simple strategies.

Why I should suffer because someone else is making false commitment.

Whoever is making a fake commitment should get penalties.

Good customer service should be available for good customers only.

Give time not waivers until it is going to be dead amount.

Pen down everything and get approvals on email.

Every communication should be on records, does not matter if you have to write it down every time or record the calls.

Make a list of defaulters and try to get advance for their next service requirement.

Every month add something in the saving kitty irrespective of the worst circumstances. This amount can be used for survival when the business gets it worst hit.

Always be motivated and try to stay happy. This will help in generating business from other sources.

Push the sales teams to hit hard on market to make sure we have enough open leads all the times. And once they meet their target give sometimes even more than they deserve.

Always communicate with your employees in advance so they do not get surprises.


By this article I am not trying to handle everyone with single stick. Analyze and understand the situation before taking action. The client may be in real trouble and struggling with fake commitments. Understand client position, give discounts and try to get whatever you can (in case of a real problem).

End of the day you have to save your business and not the world.

Stay motivated because only a happy person can keep others happy and de-motivated one can lead to disasters.
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