Published by Credit Matters Pty Ltd.
Welcome to Credit Matters Newsletter for September 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 pleased to announce we now have 80 business and associated professional bodies listed in our Better Business Club.
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:
Debt Recoveries, JMA Credit Control and IDOM are three businesses which recently joined the Better Business Club and have provided an introductory brochure of their services.
There is a growing trend by corporate enterprises to request their suppliers not to send a monthly statement of their trading account. It seems for some reason, management of these enterprises, believe money can be saved by asking their suppliers to manage their (the customer's) accounts for free.
This is an interesting concept in our "... user pays world" where it seems almost every service seems to have a charge these days. Alternatively we also see the other side of the coin where business managers are trying to reduce their expenses. Accordingly, some business managers will always try to get something for free notwithstanding another well-known concept "... nothing in this world is free!"
However if you thought asking your suppliers to work for nothing and this would save a few dollars, I suggest you are seriously misguided. In my experience, suppliers which "manage" their customers' accounts often do very nicely. One such supplier made so much money they part funded the operating costs of their Accounts Department at the expense of those customers which did not want to manage their own accounts.
Incidentally, there are another set of issues at stake. It would appear if you do not want a monthly supplier statement, you also do not want to know the total of your firm's current liabilities, or how much it really costs to manage your Accounts Payable liabilities.
In light of these issues, your conundrum is: are you happy to guess your corporate enterprise is saving money or would you rather prove you are saving money?
This month's quote is particularly relevant in today's business environment and is a subject which I touch on regularly in my blogs. We live in a constantly changing and evolving world, both socially and commercially.
Unfortunately when I look around the business community today, two business aspects stand out.
1 Many business organisations are stuck in the past due to poor or under-developed management thinking and actions.
2 The amount of influence people from outside the business world have and which in the main, negatively affects our business enterprises and outcomes.
At this point, I could get on my soap box and really let rip with what I see happening in the world around us. Unfortunately, apart from venting my frustrations and anxieties, that will not achieve much.
Therefore let us review what is happening in society and see how these issues will affect our business world.
The main issues in society today are I believe:
(i) a lack of self-discipline, both socially and commercially;
(ii) an attitude of "I want it now", which we see in the actions of many people in their daily lives, in business decisions and from investors;
(ii) "I have a right to it" attitude which we see around us and one of the key influences on why fraud occurs in business;
(iii) money is the main driver of our behaviours, again both in our social inter-actions and business relationships where often it appears, nobody wants to pay a fair price anymore;
(v) drugs and gambling, which are blight in modern times and often the cause of theft and fraud within both social and business environments;
(vi) fear about work security and a lack of employment opportunities.
In each of these issues, we note how being a good citizen and being prepared to work honestly for the long term, has changed. Now it appears the two main drivers of peoples' behaviour is focused on "what's in it for me", and "I want the money now and do not care how I get it!"
Now I know these themes and issues do not apply to everybody. However these themes definitely do apply to a significantly larger proportion of the population today than they did in the past. The causes of such behaviours today are directly influenced by changes in society within which we live. Furthermore as the monthly quote suggests, the type of behaviour which we see in the society, will in time, become self-evident in the business world.
If you understand these issues, you can see such behaviours in the business world now, either though the behaviour of your suppliers, customers and employees. With such understanding you can create operating systems and processes which will maximise your sales, cashflow and profits.
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.
"... is that changes in society drive changes in business, and that as society becomes more and more deviant, businesses in turn have to become more deviant to prosper, or even survive."
In "The Deviant's Advantage: How Fringe Ideas Create Mass Markets" By Mathews, R & Wacker, W (2002)
Updated ASIC policy for externally administered companies and registered managed investment schemes being wound up
ASIC has today released a consultation paper on relief for externally administered companies and registered schemes being wound up. 14-211MR. 25 Aug.
ASIC winds up 10 abandoned companies owing more than $350,000 in employee entitlements
ASIC has exercised its wind up powers to appoint liquidators to a further 10 abandoned companies to assist employees of these companies to gain access to the Fair Entitlements Guarantee. 14-210MR. 25 Aug.
Redlight Manor Australia Ltd fined for failing to lodge financial reports
An unlisted public company marketing online adult services has been fined $12,000 for failing to lodge financial reports with ASIC for three consecutive years. 14-247MR. 23 Sep.
ASIC investigation leads to former Phosphagenics CEO pleading guilty to $6m theft
Dr Esra Ogru, a former chief executive officer of Phosphagenics Ltd, pleaded guilty today in the Melbourne Magistrates Court in relation to her role in the alleged theft of more than $6.1 million, following an ASIC investigation. 14-209 MR. 22 Aug
Mark McIvor fined and convicted for failing to assist liquidator
The founder and former director of Equititrust Limited, Mr Mark McIvor, has been convicted and fined $10,000 after failing to assist the liquidator appointed to his three companies. 14-223MR. 3 Sep.
ASIC investigation leads to five years in jail for former director
An ASIC investigation has led to Mr Carlo Cini, a former director of Williamstown-based company, C Cini & Company Pty Ltd, being sentenced to five years and three months in jail. 14-206MR. 20 Aug
SA liquidator successfully completes quality review program
A quality review carried out by an independent registered liquidator has addressed concerns raised by ASIC about some of the external administrations of Adelaide-registered liquidator, Paul Jorgensen, of Kennedy & Co. 14-219MR. 1 Sep.
New Booklets Available
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.