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.
It is obviously difficult to contemplate turning away business especially from a customer of long standing. Similarly the attraction of securing “prestige business” can be very seductive.
However an objective assessment may well lead to the conclusion that at times the best course of action is to leave these opportunities to others.
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 whilst allowing focus to be placed on more profitable activities.
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