In her article entitled “When customers don’t pay”, published in the current issue of the Harvard Business Manager (12/2012), Dr. Christine Vallaster, lecturer at the Institute for Entrepreneurship at the University of Liechtenstein, outlines the story of a team of founders caught in a start-up trap. Three experts analyse the situation, reaching similar as well as conflicting conclusions.
In her article entitled “When customers don’t pay”, published in the current issue of the Harvard Business Manager (12/2012), Dr. Christine Vallaster, lecturer at the Institute for Entrepreneurship, outlines the story of a team of founders caught in a start-up trap. Three experts analyse the situation, reaching similar as well as conflicting conclusions.
Two young founders of a software company are facing bankruptcy. Their fictitious company ChangeTreatment has developed an e-learning program for doctors and nursing staff, for which they had never received an official order and therefore have never received any payment. The customer turns out to be corrupt, adopting stalling tactics by making empty promises.
Ethical questions
The author, Christine Vallaster, was especially interested in the ethical aspects of the topic. Should the two specialists agree to the bribe they are asked to pay, or should they file for insolvency? Can the company still be saved? And what kinds of mistakes were made in terms of business administration? The experts agree that the customer is not a serious business partner. They claim that the relationship of trust was impaired from the start. Solutions to this situation include finding a suitable investor, creating an acquisition plan and suspending all further activities of ChangeTreatment.
Practical case study
Christine Vallaster derived her case study from a real situation. However, she has anonymized places, companies and persons in her article. After the article’s publication in the Harvard Business Manager, one of the entrepreneurs spoke out in the forum and reported how and where he had found help, whether he was able to continue working with the customer, and how the company is doing today. The story took some interesting turns, which are worth being explored by experts in more detail.
Background
Christine Vallaster earned her teaching qualifications at the University of Innsbruck and has been working as a lecturer at the University of Liechtenstein’s Van Riemsdijk Chair in Entrepreneurship since 2008. In her research, she focuses on the formation of strategies, on branding and on sustainability. She has published articles in various academic journals and draws from her knowledge to teach application-oriented lessons. Her practice-related articles are printed in German and English management magazines.
Dr. Christine Vallaster, lecturer at the Institute for Entrepreneurship
Article “When customers don’t pay” (in german)
Current issue of the Harvard Business Manager (12/2012)