Oct 23 2010

GETTING PAID

“Oh, it’s Saturday night

                                               

  and I ain’t got nobody. 

                                   

I got some money cause

                                 

I just got paid…” 

 

You know that song? Are you singing it right now? Then you know what? Too bad you “ain’t got nobody,” but you’re a lucky boss because it’s not everyone these days who can say they’re getting paid.

If you’re not getting what’s owed you and you own or manage a business, there are other options besides law suits, bankruptcy, or hiring a couple of thugs from you-know-which-State.

This screwed-up economy being what it is, if you haven’t stepped back to re-visit your Accounts Receiveable policies and practices recently, maybe this coming week is a good time to jam an up-dated A/R assessment into your schedule.

You might start with an up-to-the-minute cash flow analysis so you have a sense of the shifting sands.

Next, take a good hard look at what your customer payment and credit arrangements are. Have you adjusted terms to both encourage sales and account for customer needs to avoid major lump-sum payments? Have you done this is a way that also allows you some breathing room? Take some deep breaths

HOW you explore this issue is influenced by the type of business you’re in.

Retail and wholesale operations do not have the same dynamics as manufacturing or B to B. (i.e., what works for a car dealership won’t work for a mattress manufacturer or an IT consultant.) 

Every business, though, has key customers.

And special allowances must be made for theses entities whether you’re drilling their teeth, constructing their townhomes, providing their office supplies or maintaining their insurance coverage.

                                                                

Will your key customers fold or migrate to lower-priced competitors if you don’t extend them better terms? This need not mean lowering your prices, but it might mean extending payment time terms, or offering special incentives for timely payments. Can you go to a “baker’s dozen” with product sell offers, or with service hours? Take a lesson from construction guys.

Can you put more of a burden for collections on third party negotiators — your bank, finance company, credit and collection firms?  It may be less expensive to bite the bullet and pay for outsourcing help than to drag your staff people, who are inexperienced with the finesse needed to succeed at this task, away from the work they do best.

                                                                 

Careful if you opt in this direction . . . 

                                                                

Insist that contracted people who actually connect by phone or letter or email treat your customers respectfully and courteously. Be sure you are in control of all interface scripts and personnel. Plant a “secret-shopper” or two on the list to gain a firsthand accounting of how your hired guns perform, and make sure they are honoring your sensitivities. They are contacting YOUR customers, not theirs. 

In their zealousness to earn their percentages, many collection organizations “rough-house” targeted debtors or unleash a barrage of annoying calls from (too often) non-English-speaking callers to the point of prompting backlash, instead of gaining cooperation. 

Okay, okay, I know. It IS Saturday night, after all. So go enjoy. But make a mental note for Monday to check out if the policies and practices you’ve been following are working for you or against you. The same can be said, by the way, for evaluating candidates, so:

HELP SAVE THE ECONOMY November 6th, 2012.

Vote to move small business forward… Support 

those who endorse free market competition and 

 job creation tax incentives for entrepreneurs! 

____________________________________ 

302.933.0116    Hal@BusinessWorks.US  

Thanks for visiting. Go for your goals! God Bless You.

 “The price of freedom is eternal vigilance!” [Thomas Jefferson] 

Make today a GREAT day for someone!

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Mar 30 2009

THE BUSINESS OF GETTING B2B BUSINESS

When the chips are down,

                                                                           

entrepreneurs switch to pretzels

                                                                                                                    

     When a consumer product manufacturer or service provider needs to dig up more business–even in such a mainstream media created economic vacuum as we’re presently being sucked deeper and deeper into– there are literally endless resources spelling out a myriad of strategic avenues and approaches…not to mention equally endless tactical options, methods, and techniques.

     But let’s say you have a B2B business. You provide services to the product manufacturers and service providers. Maybe you’re a customer service training organization or a building custodial service or a website design and maintenance business. Where do you go?

     The big guys are choking. They’ve wiped out training budgets, they’re cutting back building cleaning frequency, and they’re making do with their internal IT people to keep their websites functionable.

     How do you get these corporate giants to stand still long enough to consider adding or extending your services when they are in this budget-slashing frame of mind? How do you tell a company that’s laying off employees that they need customer service training now more than ever because the best source of business is existing and past business, and they’d better step up those relationships? 

     The big product and service guyscan make it nearly impossible for the little B2B guys to survive. Ah, but that’s where entrepreneurial spirit rises to the top. When the chips are down, entrepreneurs switch to pretzels. And guess what? Entrepreneurial hi-tech-anchored businesses are not only breaking the communications barrier, they are pulling entire legions of small B2B businesses along with them…not very unlike the makings of the industrial revolution.

     So once again, it is small business to the rescue, even as big business is being rewarded with government trillions for having screwed up the marketplace beyond recognition, and then for having sidestepped the wiser path of bankruptcy

wiser because it would have forced more efficient operations and more effective products and services

wiser because it would have spared us all ten more years’ worth of beating our collective brains in, to raise the taxes and repay the debts that are being used now to feather union beds in return for their political support. 

     What a sad and sick commentary on society that we’ve come to this. How fortunate we all are that the entrepreneurial spirit does still live, and will ultimately bring us a return to respectability, assuming the White House doesn’t continue paying off political promises with our hard-earned tax dollars. But it’s what we must all want. We elected zero business experience.

Good Night and God Bless You!  

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