In business today, certain principles apply, as they have always done. The problems in today’s business world are exacerbated by a group of parties that seem to have little experience in business. Worse still, they seem able to make decisions free of any sense of responsibility or accountability.
In essence then, this means that every business must be prepared to stand almost alone in a sea of troubles that includes, where savings and cash are deemed to be lazy, debt is accumulating and too easy to obtain, cybercrime is on the rise, plus interference by others, etc. Worse still, major corporations and governments and their agencies stand by and watch, and either do nothing or add to the problems we all face.
Accordingly, my suggestions to survive and succeed in such an environment include the following.
1 Cash is KING and the lifeblood of a business, and your own personal affairs. It equates to freedom to operate as you wish, as long as you operate according to the laws and regulations of the country you are operating in.
Equally important, you can often buy assets and services at a healthy discount, and cover unexpected emergencies without too much worry.
Cash also allows you to operate your business unencumbered by the problems and issues which may be affecting your competitors.
If cash and savings are good enough for Warren Buffett, one of the best business people alive, it should also be for you and your business
2 Debt is NEVER free or cheap. It is also addictive. It should never be obtained just to pay day-to-day expenses or to buy “look at me” assets or services. It is worthwhile however if used wisely to increase the worth of your business and personal life.
The fact is that immediately you borrow, you are bound by the rules of the contract and where another party has a say over your future until you pay the debt, plus interest. If you do not clear your debt in full as per the contract, your future will be negatively compromised.
The above is easy for me to say, and not all businesses and individuals can wait to grow their savings to achieve their goals. If you must borrow, do so conservatively and greet the end of each debt contract respectively and as another “get of jail” celebration.
3 Associate with good and reputable people, and/or with those that are prepared to say NO, or who ask questions like “… have you thought of the repercussions of that decision?” or “… do you really have to buy or need that now?”
One the quickest ways to damage your current and long-term future is to mix with the wrong people who have doubtful histories and reputations, or with those that always say YES.
Again, I refer to Warren Buffet who advises reputation is everything. As we all know, it takes a long time to gain a good reputation, and minutes or one wrong act to lose it.
Treat every business stakeholder and everybody fairly, plus, although it sounds contradictory, with a degree of suspicion, until you know more about them. In business and life, knowledge of every party you deal with is more essential than ever before. Due diligence therefore is a must.
4 Employ the best people and in the right way that minimises costs yet delivers quality results. There are many great professional people available on the market these days, many of which are not as dollar expensive as you might first think.
Furthermore, if an experienced professional becomes available or is required to fill a particular skill, it would be wise to find a way to employee them. Remember if you don’t employ them, your best competitor may do so, or the potential employee may start up a disrupting business in competition to your own.
Employing a young person who shows initiative, a positive attitude, and has good references, may also be a great employee over the long term. They may not have all the skills you want today however they can be educated ethically and properly in the ways you wish to conduct your business.
5 When using technology tools, pay for the best you can afford and for the right reasons. Bad technology employed inappropriately, costs money, sales and reputation.
For example, try and seek the information you want from the websites of major companies and government departments and I suspect you will be dissatisfied and leave frustrated as so often happens. Do you really want the same results to be experienced when bad technology and poor applications are visible on your website?
6 Be REAL, because there are no secrets in the world today. Your current and past reputation and performance history are almost instantly available on the web today.
Manners, the right language and GREAT customer service are essential factors these days when selling and getting paid for outstanding invoices. Your focus must always be to quickly supply any party contacting your business with time saving and correct answers to their questions and enquiries.
Apart from the fact it is just common courtesy to do so, it is also a great example of how your business is different from its competitors. After all, as it is continually stressed, people contacting your business have limited patience these days. If there is one thing that really makes people angry and leave your business without buying, or paying that outstanding invoice, it is poor service and incorrect information.
7 DO NOT hang on to credit claims or any negative process issues because you don’t have the time or money, or it might negatively affect your sales budgets and commissions. To do so, is one of the quickest ways to ruin your reputation, lose sales, reduce cashflow, increase opportunities for fraud, etc.
There is no better time to deal with any credit claims or identified operational problems than immediately upon receipt or when first identified. This strategy will help demonstrate that your business means to operate ethically, efficiently and properly, plus it shows all stakeholder contacts are valued.
In summary, the above suggestions are based on historical and proven business realities. If you follow the above, you will be able to maintain a positive level of self-esteem, an essential component of success. Having a positive level of self-esteem means that you exhibit a position of strength, make fewer mistakes, and deal with fewer bad stakeholders by adhering to the best of disciplines and make sensible business decisions.
In turn, you are likely to be successful because your customers and suppliers will respect your reputation and service qualities. Meanwhile those seeking to take advantage of your business will find they are wasting much of their time and money. As a result, to more easily achieve their objectives, the fraudsters, criminals and slow payers will move on to your competitors which lack the same level of self-esteem and business disciplines.
These suggestions are the same irrespective of which country your business operates in. As is the case for all businesses, there are no guarantees of success. That truth is especially important in these difficult times where it is best to understand that basically you and your business are on your own.
The above suggestions and knowledge are the factors which will give you every chance of survival and growth ahead of those that do not focus on these factors.
Want to know more, contact Kim at kim@creditmatters.com.au, or 0411 649 261, or have a look at what we offer via our website at www.creditmatters.com.au
