Sometimes it’s best to say no

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 rigorously monitor 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.

Stricter controls over such elements as payment terms and credit limits will lead to reduced turnover.

However there is a reward for such fiscal discipline. Avoiding defaults by customers not only protects the company’s bottom line but allows focus to be placed on more profitable activities.