What's New At Credit Matters?

The new feature "Why Australia's Recession Will Be Worse Than it had To Be" is now on the website.

There are also brochures from the Australian Small Business and Family Enterpris­­e Ombudsman on the lack of insurance policies for small business. This situation is likely to have a profound effect on many which may have to close their doors; a factor all suppliers should be aware of when offering B2B credit.

There are also details of RSM's next fraud course which may be of interest to investigators and others wishing to upgrade their skills and qualifications.

We have also added an older feature by Barry Urqhart, which provides an important reminder about the social responsibilities of all businesses from a marketing perspective, irrespective of economic conditions. 

Finally, but not least, Credit Matter's own feature "What's a criminal look  as a reminder that fraudsters are always a problem, and even more so in a recession.

Don't forget, if you wish to promote your business services at an affordable rate, contact Kim at kim@creditmatters.com.au. You will be surprised at the value we have to offer.

Quote Of The Month

“Everybody talks about a new world in the morning. New world in the mornings so they say. Now I, myself, don’t talk about a new way in the morning. A new day in the morning, that’s today.”

Roger Whitaker’s song, “A New Day in the Morning”

Monthly Business Observation

Too many businesspeople and managers procrastinate, put off acting sooner rather than later and believe they can wait until “tomorrow”. However, this morning is already yesterday’s tomorrow.

There is no doubt, hastening slowly at times is the best process for complex issues, or if you do not have a good feeling about moving forward on a particular project. However, a decision must be made at some stage, because doing nothing is as fatal as moving in haste.

In today’s fast-paced business environment, even in this recession, events which may not be visible, are still moving rapidly around you. Furthermore, do not be fooled by government handouts, or debt moratoriums that you can wait around and do nothing until they end. The reality is that a great deal is happening all around you, and time as they say, does not wait for anyone. For example, if:

1. you owe others, interest is increasing and time to pay the debt is running out;
2. you are owed money from B2B credit sales, your ability to collect is compromised, and
3. your customer becomes insolvent, the period to avoid preferential payments is also running out;
4. your customer may be trading insolvently, or is a zombie business, which can only last whilst government handouts, debt and rent moratoriums exist, and slow paying debtors are tolerated;
5. you expect that your competitors and industry disruptors are also doing nothing like you, which is highly unlikely, etc.

The factors of business where this situation is most critical are in sales, accounts receivable and customer service. For instance, customers now expect almost immediate responses to sales enquiries, identifying when products and services can be delivered, processing invoices correctly and within time, plus quickly following up unpaid invoices.

If there is any lapse or mistakes with these processes, you can expect to lose the potential sale outright, or a late payment. These days, delays in getting paid could well be fatal if your customer is no longer viable or insolvent.

In Summary

Too many businesspeople and managers procrastinate, put off acting sooner rather than later, and believe they can wait until “tomorrow”. However, this morning is already yesterday’s tomorrow.

In today’s fast-paced business environment, even in this recession, events, although not readily visible, are still moving rapidly around you. Furthermore, you cannot wait around and do nothing until government handouts, or debt moratoriums end. The reality is that a great deal of business is happening all around you and time as they say, does not wait for anyone.

Therefore, to do nothing or just drift along as your business did previously, is a recipe for disaster which may lead to the demise of your business.

This Month's Business Inconvenient Truth

The world has changed over the past 12 months and so has doing business. The old ways of selling may no longer be valid or appropriate. What we do know from recent times, is that many salespeople are afraid to say no and / or afraid to pick up a telephone.

We also know, the problem usually stems from management which have;

• created a climate of fear if impossible budgets are not achieved;
• always impatient for immediate results;
• employ professional salespeople and then do not trust them;
• employ unprofessional salespeople and wonder why they cannot “sell”;
• failed to train and educate their salespeople properly;
• failed to provide adequate resources, especially in back-up customer service resources;
• failed to encourage their salespeople to liaise and work collaboratively with the accounts people; etc.

Today, the art of selling, and getting paid, is a whole new ball game. A business needs salespeople with people experience, great product knowledge, a positive customer service ethos, willing to engage with accounts and the resources to do their work efficiently.

A business also needs salespeople with the ability to say NO and then still sell, plus a willingness to visit a customer, or pick up the telephone. As a side issue, it may be that the salesperson who is not willing to visit or speak with their customer, has also done something wrong by the customer and doesn’t want to front the customer and be held accountable.