Credit Matters Newsletter
In This Issue
- What's New At Credit Matters?
- Quote Of The Month
- Monthly Business Observation
- Monthly Business Conundrum
- This Month's Business Inconvenient Truth
- Latest Blogs & Readings
- Special Topic
What's New At Credit Matters?
Welcome to our November newsletter. The focus this month is a mixture of different business factors worth considering as you seek to improve your business’s opportunities for success.
This month’s quote and blog focuses on the fact that No, may not be the end of an opportunity. In reality, with few exceptions, it can be an opportunity to seek a win-win outcome for both parties.
The conundrum this month focuses on the cost of due diligence assessments against a possible loss later if no or little due diligence is completed.
Due diligence is not just a cost, as the information obtained, good or bad, is always an asset to your business.
Our inconvenient truth suggests that "Unpaid receivables cost your company much more than you may think" and is presented by Dean Kaplan from the US.
The Special Topic draws our attention to the Sahm Cession Indicator and the RBA’s interpretation.
There are two business brochures attached. The first is from Stopline and asks the question, DOES YOUR BUSINESS NEED A WHISTLEBLOWER HOTLINE SERVICE? The second brochure is from Peter Nash at Absolute Facts on WHAT IS BUGGING YOU?
Kim is available to help with your questions and concerns if you need any assistance, and as always, the first chat is always free of charge or obligation.
Quote Of The Month
"This is: I've been told no but no is not the end. No is just go away and find a different way to get a yes.” Liz Ellis, When Netball said “no” to Liz Ellis. She refused to let it stop her. By Emily Patterson
Monthly Business Observation
In most business dealings, rarely does No mean No. When it does, it makes sense. Three examples where it males sense are (a) when you find out that the other party is fraudster or criminal, (b) is a known bad debtor, or (c) may lead to a conflict of interest.
One of the key aspects of doing business successfully and profitably, is to counter a No from the other party. There are always options. Sure, a number of positive outcomes may require (a) in going outside the normal buying or selling guidelines, (b) thinking through all the different options or (c) additional research, etc.
However, to succeed in business, you cannot knock back a potential profitable transaction just because it doesn’t fit your normal practices and procedures. For instance, in these trouble times, there will be potential customers who you just cannot provide credit facilities, for any number of reasons. However, in these situations, offering a cash option with a discount, can still result in a profitable sale.
The last thing you want your business to be recognised for is being a “No” business organisation. That title will always restrict your options for success. It also suggests that your management and sales teams are difficult to deal with, can only work to a prescribed course of action, or inherently lazy and cannot “sell” when the going gets tough or cannot find another sales option. In addition, it may mean that management does not trust its employees to do the work or operate ethically.
No, is rarely a complete answer in business. It can in many situations, just be the start of negotiations for a win-win outcome for both parties.
Monthly Business Conundrum
For some businesspeople, due diligence is an expense, and therefore because it is considered as an expense, means that these businesspeople often try to minimise its cost. Regretfully however, such thinking often leads to greater cost than the actual cost of completing due diligence assignments in the first place. Furthermore, the information obtained from your due diligence assignments, is always an asset for your business.
There is plenty of evidence in the public domain these days which can help your business complete due diligence assessments, often for a minimal cost. These sources are satisfactory for an initial assessment, or when the dollar risk is small. If further evidence is required because the assessment results cause concern, then the use of independent service providers should be used.
These service providers bring a level of service which many businesses cannot provide from inhouse employees. They also provide various levels of service depending on your needs and the information revealed in previous assessments. As mentioned, due diligence is required especially when large dollars are at risk, or information obtained previously points to possible future problems. Perhaps the best reason to use a professional service is that they have no hidden agendas or preconceived ideas which may prejudice the value of the due diligence final report.
At the end of the day, there are always costs in business. There are two sorts of costs, those that are necessary, and those that are unnecessary. Due diligence costs are not just an expense, they are also providing an asset for the business. In turn, this asset class can lead to minimise unnecessary costs which can include loss of business to fraud and unprofitable sales. All these later costs do not lead to positive outcomes for your business.
Your conundrum regarding due diligence assessments is whether to spend money to buy an asset and provide perhaps minimise costs and losses. Alternatively, you can ignore these assessment costs and pay potentially greater costs later if the business transaction creates a loss.
This Month's Business Inconvenient Truth
This subject has been a constant in my writings for years. I thought it worthwhile to add Dean Kaplan's version of the same theme.
Mr Kaplan is a respected businessman and president at The Kaplan Group from the US.
I have known Mr Kaplan for over 10 years and suggest that his article is worth a read. A link to Dean Kaplan’s article is below.
Latest Blogs & Readings
What is the Sahm Recession Indicator?
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.
Future Opportunities & Possibilities
Credit Matters is continuing to grow and provide marketing and knowledge about financial risks to the Australia business community.
Futhermore, 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 info@creditmatters.com.au.
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 info@creditmatters.com.au for options.