Credit Matters Newsletters

We wish to notify all members that entry to the Professional Development Award has now closed. Surprisingly, there weren’t any participants for this award and the first prize of AUD1,000; therefore no winner will be announced this year. 

In an effort to understand why there were no participants for the Award, I would appreciate your feedback and thoughts to the attached questionnaire 

As a thank you for your assistance, all questionnaires completed and returned will go in to a draw for a $100.00

There is a new feature in our Members Area prepared by The Kaplan Group on debt collection in the US. If unfortunately, you are currently experiencing payment difficulties with a US based customer and need the assistance of a debt collector, this feature may be of value.

We welcome Stopline Pty Ltd. to the Better Business Club.

Advertising via Credit Matters

If you are interested in reaching business prospects who need your services or products, contact Kim to see what he can do for you. There are many different opportunities to advertise your business via Credit Matters and it may not be as expensive as you might imagine.

This month, you will find attached our questionnaire about the Professional Development Award, an announcement from Trace Personnel, and brochures from Stopline Pty Ltd, CreditWatch and Peter Nash of Absolute Facts.

Currently it appears there are two mainstream views on the state of the business world. It seems the ever-positive commentators advocate there are few problems and many opportunities. On the other hand, the more conservative commentators would suggest otherwise. They believe the global financial and business fundamentals are out of alignment and suggest a sustainable future is at risk.

To further complicate the situation, we also know the media is more interested in bad news stories rather than good news stories. Bad news sells better.

So, what is the truth? As is so often observed in real life, the truth is what the observer wants it to be, even if it is incorrect.

Warren Buffett's quote then becomes useful in understanding how business people might think, whilst providing an insight on how we might want to act in a complex world.

if the global business environment is less than favourable, business people may be tempted to reduce their business costs. Of course, reviewing how to save costs in an open-minded fashion whilst still operating effectively, has some merit.

Should you only focus on reducing costs, you may fail to understand how the costs saved have resulted with increased costs elsewhere in the business. In addition, your day to day business may suffer and the business becomes insolvent anyway because of a lack of sales and cashflow.

From another perspective, once fear gets a grip on management's thinking, and their attention is on cost minimisation, they often fail to see other opportunities which materialise. The fact is; more profitable business opportunities are likely to present themselves in disruptive times then in more stable times. 

On the other hand, if the global business environment is deemed to be in reasonable shape, many business people will keep expanding and moving forward without due care to possible negative factors. This could easily have harmful consequences if the business is not strong enough to manage any adverse events which may not have anticipated. 

Alternatively, other business people will see opportunities even if a few negative factors might occur which could cause them problems. These adverse consequences however, will be included in their plans when looking for new opportunities.

Taking the positive outlook can work in a disruptive business environment. The proviso of course is; the business has proven sound financial resources and income streams plus strong operating foundations. For instance, there must be the evidence that most negative business events can be reasonably managed, e.g. if the business was to lose a major customer, it could survive.

Alternatively, if an opportunity was to occur, you want the confidence that your business is in a position to take advantage of the takeover a competitor, buy a complimentary business, start a new service or move in to a new market, etc.

In disruptive times therefore, understanding how Buffet's quote may impact on your business operations and future makes some sense.