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Yesterday's Business Principles Still Work Today

Kim Radok22 July 2014

YESTERDAY'S BUSINESS PRINCIPLES STILL WORK TODAY

There are times when I interact with other business organisations and wonder, "... do business people really understand the art of doing business anymore?" For instance, I was always led to believe without customers and cashflow you didn't have much of a business. By the way, loyal and dedicated employees were rather important as well.

However when observe the manner in which many business people operate now, I start to wonder if these factors are really that important anymore. Now I accept my comments may be a bit over the top, and do not apply to every business. I also accept, we need to adapt and change our business practices in today's business environment. For instance, the efficiencies of technology advancements, outsourcing the correct business functions and understanding change, are all important factors.

Implemented properly, modern business operational formats have all added expadentially to the ability of organisations to succeed in the modern world. However certain business fundamentals do not change, even in these modern times.

Here are 10 business fundamentals to think about and which add value to your business.

1  Courtesy has never gone astray and is as valid today as in the past. Responding to contacts promptly and understanding how the use of "please" and "thank you", add value to your business relationships.

2  Spelling and grammar indicate care, respect and aid clear communication between you and the other party.

3  Honesty and transparency of operations and interactions, assists in maintaining business disciplines whilst building trust and respect with all stakeholders.

4  Silence is not always golden, especially when your supplier asks to be paid. A response never goes astray to these enquiries for the unpaid invoice(s).

5  Financial credibility is worth dollars in the bank.

6  Until the invoice is paid and the money is in your bank account, customer service is paramount.

7 Cash must be managed properly or cash is lost. Consequently, all accounts payable and receivable accounts must be reconciled monthly or your suppliers and customers control the management of your cash.

8  Fraud discovered at any level of business must be acted upon, people prosecuted and the event(s) publicised. If these actions are not taken, effectively fraud is condoned in your business.

9  Employees must be treated with respect by management if the business is to maximise the return for the dollars you spend on them.

10 "You only get what you pay for" still applies in business today. As experience shows, a cheap price upfront can lead to expensive consequences in the long-term.

These 10 business fundamentals worked in our parent's days. The same business fundamentals are equally important today. Failure to understand these fundamentals means  your business will never achieve its success potential. Furthermore, cash, profits and your reputation, will gradually slip away from your business unseen until it is too late.

You do not need to be a Rhodes Scholar to work out nothing is harder to reclaim then your financial credibility and business reputation. Your bankers, employees and position in the marketplace will soon tell you.

May you be paid today rather than tomorrow

Kim Radok

kim@creditmatters.com.au

www.creditmatters.com.au

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