Published by Credit Matters Pty Ltd.
Welcome to Credit Matters Newsletter for November 2014. Our monthly newsletter contains information about financial risk management issues, blogs, advice of new business listings and free advice from organisations such as ASIC.
You can always view past copies of our newsletters via our website at www.creditmatters.com.au
We are also pleased to advise we have entered in to discussions with various organisations about providing additional material to make our newsletter even more useful for readers. Stay tuned for future developments.
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. For instance, you will note the attached flyers with this newsletter from Investigator Upgrade, CMARS and Debtor Control
Investigator Upgrade provides information about their courses and educational services.
The websites of CMARS and Debtor Control, which are subsidiaries of Credit Matters, were recently upgraded. A new business flyer was also produced to coincide with the launch of the new websites.
DIY in the home is a useful way of saving money on the minor maintenance tasks around the home verses employing a tradesperson.
Likewise the DIY businessperson can save money for their business by completing minor work themselves. The proviso is of course the work does not affect the day-to-day business operations, the person is experienced and enjoys the work and completes these task(s) in a timely manner.
Unfortunately and too often we see the other side of the DIY businessperson at work. The result is the business loses more money than is gained. Typical examples are when terms of trade or contracts are cobbled together, telephone calls are made at the wrong time, computers are repaired and cannot be used, bookkeeping completed which is inaccurate or with mistakes etc.
When a professional is not employed, additional problems usually occur. The problems lead to loss of revenue, unexpected costs and lost profits.
Your conundrum as a DIY businessperson is: do you pay upfront known costs to increase profits, or do you do it yourself at an unknown cost?
This month's quotation rings true for so many of us in business today. Crooks soon expose themselves as they are unfortunately, a natural part of the business environment. Through our business dealings and over time, we soon understand this sad reality.
Once it is accepted that not all participants in business are honest, we can learn about, and use those strategies which offer our business a level of protection. However I must stress, you will never completely eliminate the potential loss from crooked people. It is and always will be an on-going battle, as these people develop new strategies in an effort to take advantage of you.
The honest person on the other hand, presents us with a different set of problems. The greatest problem is; there is no rule book for identifying an honest person who will cause a loss to your business.
The problems with honest people are as follows.
1 There are no rules which stop honest people being incompetent business owners and managers.
2 Honest people are also human who are not immune from life tragedies or weaknesses when under pressure from time to time.
3 People who appear to be honest are likely to be within your family or group of friends. As history shows, there is no more dangerous business customer than a family member or friend.
4 It is easy to feel empathy for a known honest person when they are down on their luck. It is not unusual therefore to offer this person extra opportunities to help them rebuild their business. Unfortunately however, your family member or friend often then abuses the offer or their business fails anyway.
These factors are all impediments in making rational business decisions when honest people are in trouble. The only way to deal with these situations is to review the circumstances of each person relative to the circumstances in front of you at the time.
If we were dealing with the crooked people of the world, it is relatively easy to make a cold-blooded and unemotional decision not to trade. Alternatively and better, only deal on a cash upfront basis.
In the case of the honest businessperson, we are usually starting from a position or rational which suggests, the honest person will not let us down. This is not a positive position to start making a good business decision. As mentioned earlier, you can only make a decision based on the facts in front of you at the time.
It maybe, your decision is still to deal with the honest businessperson and hope they will be able to pay. As a human being and according to your life philosophy, you will give them an opportunity to make good. You may know deep down your decision is probably wrong. However you rationalise that you would prefer to lose a couple of dollars and be content with yourself rather than always wondering if you could have helped the person save their business.
If you decide to help the honest businessperson in trouble, there is one over-riding consideration. You must ensure any decision made to assist this person does not affect your business in a material fashion.
Other times, when the circumstances clearly show that any business with the honest businessperson in the current situation is wrong, you must decline the business. This may be upset you as a person, however the welfare and your fiduciary duty to the business must always come first.
The most important aspects of dealing with honest businesspeople therefore come down to three critical factors. These are (i) will the decision seriously compromise the welfare of your business, (ii) have you studied and understood the circumstances in front of you and (iii) are you prepared to stand by your decision in the light of hindsight.
Business is never an easy proposition. Understanding you will deal with both crooked and honest people is part of operating a business. Knowing how each type of person can damage your business is important. On the one hand, dealing with crooked people becomes easier with business experience. Unfortunately, the story is different when dealing with honest people. There is never a straight answer that provides comfort every time.
PPS Alert: Improper registration of security interests (IRS) under the PPSA
The Register created under the Personal Property Securities Act 2009 (Cth) (PPSA) is normally used to register and protect the rights of secured creditors.
Would you like to know more?
Credit Matters provides access to blogs written by Kim Radok. Just go to www.creditmatters.com.au to read these and previous blogs.
Since our last newsletter, we presented the following blogs.
Since our last newsletter, the following posts have been added to the Invaluable Reading From Australia and Around The World section.
Credit Matters is a financial risk management resource centre for the Australian business community. If you are in business, Credit Matters is your ideal source of financial risk management solutions.
In modern business it is not the crook who is to be feared most, it is the honest man who doesn't know what he is doing. (William Wordsworth)
News From ASIC - Help with ASIC online services
Are you registering, renewing or cancelling a business name? Check out ASIC's new series of YouTube videos to help you use its business names register and other online services.
ASIC has a new look website. The new site is designed to be easy to use and mobile responsive, with an improved search function. Visit www.asic.gov.au
A free smartphone app developed by the Australian Securities and Investments Commission (ASIC) will help business owners undertake important checks before they enter into business transactions with other organisations.
For more information ASIC APP INFORMATION
Credit Matters is continuing to grow and provide marketing and knowledge about financial risks to the Australian business community.
Furthermore, we invite marketing and knowledge ideas from our readers and contributors on how we can assist our respective firms grow. If you have any ideas, please contact me at Click to see email
If you are interested in finding new ways to reach your marketplace, why not try Credit Matters. Our prices for advertising are very reasonable and advertising packages are on offer to make any cost, even more affordable. So if you are interested in reaching your customers at the right price, please contact Kim at Click to see email for options.