Credit Matters Newsletters

This month, we have been taking an extended break from work and the business. I have still been able to forward this month's newsletter. As part of the break, I have been reviewing our business and looking at how we can make Credit matters more valuable to our visitors and Members.

As usual, our Word of The Month and Inconvenient Business Truth segments continue to offer valuable business insights.

Advertising via Credit Matters

If you are interested in reaching business prospects who may need your services or products, contact Kim to see what he can do for your business. There are many different opportunities to advertise your business via Credit Matters. The benefit of advertising with Credit Matters is that our newsletters only go to dedicated readers.

QT's brochure contains information about an upcoming workshop on the 10th of September. The Bank Doctor has also provided a useful article about the importance of understanding the issues relating to online financiers. A copy of the article is in the attached PDF with this newsletter.

When first entering in to our new business, it is all very exciting as we charge full ahead building our business and invoicing customers. In many aspects, the new business owner acts like a teenager because one of their few thoughts is about dealing with risk factors.

Yet the reality for all business owners and their managers is that risk factors are always present. I would also suggest, business owners and managers today face more risk factors than ever before. Not only do all the previous types of risks still exist, many new risks could which could never have been imagined before, exist today.

If there is one observed and disappointing aspect of business today, it is to note how the champions of risk management are often treated with distain by business management. Too often management ignores professional risk advisors and when the evidence of loss is presented, blame everybody else but themselves for the losses.

The other really sad aspect of modern business is the lack of understanding of how managing risk is one of the most profitable of all business strategies. There is nothing more frustrating for management to see their cashflow budget being rendered inaccurate due to a lack of cashflow from debtors or having to pay the costs to fix unforeseen risk problems.

Many of the standard risk elements of business can be reduced by understanding and spending money upfront to reduce the chances of a risk element damaging the business. Typical productive spending would be on:

(i) preparing proper trading documentation with relevant terms and conditions, credit applications, etc. by appropriate professionals;

(ii) risk management services such as reference to credit bureaus, trade bureaux and/or other business verification services;

(iii) creating a modern professional sales culture that encourages beneficial behaviour for the business and the sales team;

(iv) reviewing your business processes and providing adequate employee training;

(v) adequate numbers of professional employees throughout the business;

(vi) being prepared to take legal action as appropriate, etc.

As Walt Disney advises, it is great to be optimistic and look forward in your business enterprises. However, it is also wise to be aware of the complexities and risks of business. Business is not without risk. If you pay due respect to risk factors, evidence suggests you are more likely to survive and prosper with your business.