In business as in poker
there are times when discretion is the better part of valour.
Put simply, some of the
best business deals are those you turn away.
All organisations operating in today’s climate need to have constant and
rigorous focus on their commercial exposure.
Against the current competitive background it is obviously difficult to
contemplate turning away business especially from a customer of long standing.
However an objective assessment may well lead to the conclusion that in
this instance the business would be left to others.
It may well be that turnover suffers when stricter controls are in place
over such elements as payment terms and credit limits.
The reward for such fiscal discipline is obvious. Avoiding defaults by
customers not only protects the company’s bottom line whilst allowing focus to
be placed on more profitable activities.
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