Cash flow issues
Whether intentional or not, it is very easy for clients to waste your time—especially when you are charging a fixed fee and where you aren't being paid until completion of the project. If not managed properly, this type of issue can cause you many cash flow problems, as not only will such client behavior reduce your profitability on their work, it can:
Reduce your availability to make money from other projects—especially if the client is demanding all of your time exclusively.
Reduce your productivity, such as through excessive support requirements, hence reducing your ability to complete other work timely and profitably.
Extend the date that you can invoice for their work though additional requirements generated.
Extend the date that you can invoice other clients through your decreased productivity.
A typical example of this type of scenario is a design client who is constantly changing their branding requirements for a project. Even if they are offering to pay extra for each...
