by test
Further sales and follow up orders can also be easily identified from a customer list.
What Form Should Sales Records Take?
Use a largish book with lined pages. Divide the pages up into alphabetical sections, about three pages to each letter of the alphabet for easy access to information.
Page 113
Fig. 43.
Recording sales on a customer list.
Page 114
Each alphabetical page should be marked off into five columns, to cater for the following headings:
Customer name
address
telephone no.
Order No.
Number of books ordered plus the date
% discount ordered
Actual amount charged
Your invoice No.
Despatch date
When invoice paid
Every time you deal with an order, make sure you immediately enter the above details in your customer list book, otherwise you can become confused by all sorts of queries that are likely to arise. Always do this before you actually pack the book or books, because under pressure of work you can easily miss this essential part of the business.
Also ensure that when the invoice has been paid, the fact is recorded. Easy checking of payments can then be carried out and you will not have the misfortune of sending out reminder invoices to people who have already paid, which will not endear you to them. So don't ever forget to carry out this simple task.
Filing
As well as files for general purposes keep files of orders, invoices both paid and unpaid, and a separate file for the customer list book, which needs to be easily accessible as it will no doubt be the most used record.
File 1.
Customers' orders will come to you on a great variety of pieces of paper. Keep them all filed away for reference if necessary. If you receive telephone orders make a proper copy of them and put them in the file. File customers' orders away when the actual order has been despatched.
File 2.
Invoices awaiting issue, plus retained duplicates awaiting payment, should be kept in a separate file for ease of checking against the customer list book.
File 3.
Invoices that have been paid should be kept in a separate file.
File 4.
Put the customer list book in a well identifiable file.
Computer software is easily available to deal with accounts if they become complex.
Page 115
Coping with Bankruptcies
You can control your own financial affairs but you cannot hope to cope with the cash problems of your customers. Unfortunately as this book is published in 1998, small businesses are still going bust. The technicalities of insolvency law are outside the scope of this book but there are some points to look out for.
Limiting Credit to Customers
In general, do not supply large quantities of books on credit to companies which you know nothing about. If you supply, say, ten copies to a small distributor which goes out of business, you will probably be able to stand the loss. But if you have sent most of your stock to them, that will be the end of your publishing venture.
When a Customer Goes Bust
In the unhappy event of a customer going bankrupt, technically not being able to pay its debts, you will receive a notice under the Insolvency Act 1986 informing you of a creditors meeting. You will be an unsecured creditor, that is, unprotected by a mortgage. Realistically, forget it. You might receive say 10% of your debt in a few years' time but it is not worth the time and effort of pursuing such a small amount. Put it down to experience and console yourself with the fact that bad debts may be deducted from profit for income tax purposes.
When the Printer Goes Bust
The worst thing which can happen is that you pay half your printers' bill before receiving the finished book. At that stage the printer goes out of business. You will have lost your deposit and you will never receive the books. Again, this is probably the end of your publishing venture. In order to avoid this situation, be aware of the following:
Try to ensure that the printer you use is well-established and efficiently-run. Ask to see other books which they have produced. You could also ask for bankers' references. Requests for bankers' references should specify an amount at least twice the proposed debt. Be on your guard if the bank reference does not include the words such as 'trustworthy', 'honest' or 'respectable'. Although bank references are not foolproof, they are free or cheap and are often the only way of checking up on the creditworthiness of businesses.
Page 116
Never forget that bankruptcy can strike without warning and try to build an element of this risk into your financial planning.
Collecting Debts
How do I Collect Debts from Customers who Fail to Pay?
The bane of many small businesses is late or non-payment of debts. If a customer owes you money, you cannot afford to write it off. As a business person, you must act in a businesslike way otherwise you should not be a publisher.
The standard approach to debt collection is to send reminders monthly to debtors. But you may well reach a stage where such letters are a waste of time and paper.
Your next step could be to telephone. This may work in the case of small customers where the person responsible for payment is easily contactable. But with large customers this may not be possible.
Your last resort should be to the powerful weapons which the law provides for unpaid creditors.
Your final letter to bad debtors should contain a statement that if the debt is not paid within a certain period of time, then you will bring legal proceedings. It is important to stress to the debtor that you are not merely threatening legal action but that this will inevitably ensue if payment is not forthcoming.
It should state that this is not a threat of legal proceedings, but rather a statement of what will inevitably happen, with all concomitant consequences, if they do not meet their obligations and pay the invoiced amount in full.
If this does not do the trick then pay a visit to your local County Court. You will find the staff helpful. They will give you booklets to help you bring your own proceedings, for example in the Small Claims Court.
It is often said that the longer a debt remains unpaid, the less likely is it ever to be paid.
Points to Remember
If you have sufficient capital to start your own publishing venture, you will almost certainly not get legal aid.
The cost of consulting a solicitor (typically at least £80 per hour) will almost never be justified in terms of the amount of the debt to be collected, certainly in the case of an amateur publisher.
Page 117
BREAKEVEN PUBLISHING
June 199X
Managing Director
Pay Never Books Ltd
Largetown
Dear Sir/Madam
As you are no doubt aware, I have written to you three times with reference to the ten copies of 'Bright Memories' by Harry Bright which I supplied to you.
Despite these letters, and numerous telephone calls, you have failed to pay the amount stated in our invoice.
In the circumstances, unless I receive full payment from you within ten days, I shall have no alternative but to commence legal proceedings against you in the county court.
I should add that I am not concerned as to the matter of legal costs, since the proceedings will fall within the small claims procedure which I can easily deal with unaided.
Yours faithfully
Harry Bright
Fig. 44.
Writing a debt collection letter.
You do not need to see a lawyer in order to sue. The small claims procedure in the County Court is aimed at non-lawyers. It is relatively simple and can be used by any literate person.
Even if you win your case, the debtor may still not pay. You then have a range of options through the court, including freezing the debtor's
Page 118
&
nbsp; bank account or sending in the bailiffs to seize goods to the value of the debt. If the debtor is a company, you can petition to have the company wound up on the ground that it is unable to pay its debts.
Do not be afraid of legal proceedings. The effect of a County Court writ through the letterbox can be magical.
Checklist
1. Is your customer list properly prepared?
2. Have you prepared sales records forms?
3. Is your filing system under control?
4. Have you allowed for the risk of other people's bankruptcy?
5. Are your debt collection procedures in order?
Postscript: After Effects
Because of his successful publishing venture, Harry Bright found himself something of a local celebrity. One result of this was that he received a number of letters from local authors, a local engineering firm and a community group asking him to publish their books. He sought advice from a friend who had worked in a commercial publishing firm. The advice was as follows:
'As a result of publishing your own book with the publicity it will receive, people may assume that you are a commercial publisher and as a result you may receive through the post offers of manuscripts of all types and descriptions, with a request for you to publish them. Do not be tempted because that way lies bankruptcy. Publishing is a risky business at the best of times, and the economic conditions are still difficult. To make a viable business out of publishing requires a deep pocket, a commercial ability to meet market needs, and much patience to say nothing of long practical experience.'
Harry listened to this advice carefully, but was already beginning to wonder to himself whether to try publishing a follow-up title, learning from the valuable experience he had gained in publishing his first book.
In making a negative reply to an author be sympathetic in your refusal: remember in the past how you may have been disappointed when your book was rejected by the publishers. Recommend them to read Writing for Publication by Chriss McCallum (How To Books, 4th edition, 1997) and also this book.
It remains only to wish you every success with your own publishing venture, and to hope that you will achieve the particular objectives which have led you to explore the publishing option for yourself.
Page 119
BREAKEVEN PUBLISHING
Anytown
Miss E. Evans
Llan Abertwm
Dim Parcio
Dear Miss Evans
I have now read the whole of the manuscript which you sent to me. I found the material fascinating, and a very interesting record of your wartime experiences. I think that there cannot be many such collections of material in existence.
I feel sure that the Anytown Museum would be most interested in looking at the collection, possibly with a view to publication. I suggest that you do not let the original manuscript out of your possession unless you are absolutely certain that it will be well looked after.
You might also consider approaching you Old Comrades' Association, if one exists.
I note that you do not seem to have a telephone. This may be a disadvantage in dealing with publishers and other organisations.
In terms of possible London publishers, I would suggest that you get hold of a copy of the Writers' and Artists' Yearbook, published annually by A & C Black. This book is extremely useful for authors wishing to get their work published.
I do not feel able to take on the publication of the material myself, because of the costs involved. You may remember that I gave you detailed information about the costings for 'Bright Memories'. We have just about covered our costs by having an intensive marketing campaign before Christmas. I do not feel that we could do the same for your book.
In this connection, I should strongly advise you to have nothing to do with any publisher who asks for money to meet the costs of his operation.
If I can advise you further, please let me know.
Yours sincerely
Harry Bright
Fig. 45.
Replying to an unsolicited offer of a manuscript. Authors should be wary
of so-called 'vanity publishing' which should be avoided.
Page 120
Glossary
A
A5. A standard size of paper measuring 210 x 149mm, equal to half A4 size (297 x 210mm).
Artwork. Any illustrative or textmatter in finished form ready to be reproduced by a printer. Often called camera ready copy or CRC for short.
Awards. Publishers and authors may be eligible for a number of cash awards, grants or prizes. See Further Reading.
B
Binding. Different methods of producing book covers to protect the pages inside.
Blurb. The publisher's description of the contents of a book and its author which appears on its cover and on publicity material.
BPIF. British Printing Industries Federation, printers' trade organisation.
Breach. The infringement of a legal right or duty.
C
Camera ready copy (CRC). Material set out on a page after all alterations, ready to be photographed for printing plates to be made.
Case binding. A hard cover binding.
Cataloguing in Publication. A programme run by the British Library to list books before publication and to make details available to potential customers.
Circular. Written information about a book, circulated to potential buyers.
Contract. The law of contract is the body of rules governing agreements intended to create legal relations, whether in writing or not.
Copy. Text matter.
Copyright. An author's, illustrator's or publisher's exclusive right to publish original written material or illustrations.
Copyright page. The page of a book which states the person who owns the copyright in the book. It usually also contains the full name and address of the publishers.
D
Demy octavo. A popular standard size for book printing the same size as the book you are reading.
Page 121
Disc, disk. A cassette-like object used to store electronic information for computers.
Discount. The percentage of a book's retail price demanded by distributors or booksellers in return for their stocking and selling a book.
Distribution. The physical business of packing and despatching books to customers. A commercial distribution service may also offer invoicing, cash collection and marketing services.
Dues. Publishers' term for orders subscribed in advance of publication.
E
Edition. The quantity printed of a book. An edition may be reprinted. A second or subsequent edition however will contain substantial alterations.