Credit Matters Newsletters

This month we added a new feature to our Members Area titled  "Inconvenient Truths of Business". This new feature is designed to help people learn to understand the risks involved when operating a business.

If you are not yet a Credit Matters Member, why not join? Membership is free and you can access all the information which is available.

Advertising via Credit Matters

If you are interested in reaching a wider group of business prospects, contact Kim to see what we can do for you. There are many different opportunities to advertise your business. However Credit Matters offers one of the few opportunities to reach a broad marketplace of customers with financial risk management requirements.

This month the AICM is announcing another step in the development of the credit management profession in Australia. The AICM has taken a historic step towards offering an internationally recognised Quality Accreditation Program by entering an agreement with the UK's Chartered Institute of Credit Management. 

Brooke Bird's newsletter contains a timely warning about becoming involved with the management of a financially challenged business. The penalties of being deemed a Director of business in financial difficulties which subsequently becomes insolvent are significant.

Business is comprised of a number of situations which can be classed as black and white, or grey in nature. The black and white situations when transgressed usually have legal and criminal implications. Grey areas on the other hand, may only have negative social implications.

In the black and white category, the boundaries set by legislative acts and legal requirements, guide business people decide how best to act and avoid the legal and criminal implications.

In grey situations, there is not the same set of prescribed boundaries of behaviour to guide business people how best to act. When these undefined boundaries are transgressed, perceived social norms of ethical or immoral behaviour apply and you will be subjected to the court of public opinion. Inevitably, you will probably be found guilty due to the power of social media.

When boundaries are crossed, the implications are always emotionally and financially expensive. In one case you may also go to jail and be socially ostracised. In the other case, you will be probably socially ostracised, whilst still retaining your freedom.

Your conundrum in business is to know when you are may be in danger of transgressing the boundaries of black and white or grey situations. With the current pressures of doing business and the dumbing down of professional people, I am not sure many business people know the boundaries. Do you?

One of the many laments of business owners and managers is that their problems are always caused by someone or something else. It seems that it is never their fault. We have all heard about the complaints raised against the Government, the ATO, their Bank, the ungrateful supplier or the tough economic conditions etc. Then of course you have all the issues relating to the unpaid invoice. It seems slow-paying customers are the cause of their cashflow problems, debt collectors are no good and legal action is too expensive to be affordable.

The truth is that they are all right about these business issues. Unfortunately, in the majority of situations, the business people who do the most complaining are those who allow others to dictate their business affairs.

When you operate or manage a business, or manage a business division or department, you have two options. You can negotiate your terms of trade or the managerial role at the start of the relationship. Alternatively, you can allow others to dictate the terms of the relationship. Both options bring risk, yet the first option gives you an element power over your future. The second option means you must accept the consequences of not "owning" your business or job.

Jack Welsh's comment is so right. If you allow others to control your destiny, you will never achieve the potential of your business or job. Therefore, if you have given up control of your destiny, you cannot be surprised if your life doesn't end up as you had anticipated.

We all have had to make tough decisions in our lives. To have a set of values on how and what you are prepared to do, may have short-term negative consequences. However if you remain faithful to your beliefs, in the long-term, you will usually come out ahead. On the other hand, by compromising on your values and belief systems, you may find there are damaging and negative long-term outcomes.

If you believe these issues are not connected to your business, try operating a business in a manner which is against your beliefs. Alternatively try working in a job where your values are challenged every day in order to keep that job. In either situation, inevitably your physical and emotional well-being will be compromised.

As a side issue to the theme of this article, being an employee of an organisation in which your values are challenged can be a wonderful learning proposition in the short-term. You have an opportunity to learn about yourself under pressure and the workings of a business. A positive mindset says, "... this is like a school room for business and I am being paid to learn!"

Care is required not to work too long in these environments as you may find negative feelings start to impact on your well-being. If you do find negativity is gaining a grip on your behaviour, be strong and leave in a professional manner that helps to protect your future career.

There are no guarantees, by taking a constructive role in controlling your destiny you will survive and achieve your goals without a few wounds. You will at least know you have done your best. Unfortunately, by allowing others to control your destiny, you will probably suffer hardships in any case, without the self-satisfaction of achieving your goals.