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.
Similarly a business transaction with a slim margin of profit carries a
disproportionate risk/reward ratio.
It may well be that turnover suffers when stricter controls are in place
over such elements as payment terms and credit limits.
However the reward for such fiscal discipline is obvious. Avoiding
defaults by customers not only protects the company’s bottom line but allows
focus to be placed on more profitable activities.
No comments:
Post a Comment