How well do you know your Customers?

This week in keeping with every financial crisis, the latest media reports have been highlighted by scenes of earnest young men and women staring intently at their computer monitors as the latest wave of red flood across their screens. It is an all too familiar shorthand for financial Armageddon.

There is no doubting that rapid advances in technology have transformed the way we do business. However whilst we watch the scenes unfold in this  virtual world we should never forget that essentially commerce is about people trading together. Whilst Computer “stop loss” mechanisms are the order of the day for “paper trading” the reality of the real world is that goods need to be moved from point of production to point of consumption and obviously this cannot  be achieved via a computer terminal.

There is an old adage “know your customer,” this dictate has never been more important than in these uncertain and dangerous times. One of the biggest problems associated with the rise of e-commerce has been the accompanying lack of personal contact between a company and its customers.

Obviously this is not an issue for an online retailers selling products over the net and being paid via a Debit Card or Pay Pal etc.

However, there is an increasing tendency for B2B sales to be concluded by email or even SMS. The personal element has been lost and so has the identity and customer relationship. The surest way to avoid problems is by knowing your customer and understanding their business. This relationship and mutual understanding is not possible to maintain thru a key pad and email ordering system.

Riding the Econoomic Rollercoaster

We are living in dramatic times – the decision of the US FED not to raise interest rates at least until 2013 graphically illustrates the unprecedented nature of the recent global turmoil. They are in fact firing their last bullet as they try and engineer a move back into Equities in an effort to stimulate recovery and avoid the slide into recession.

From a company Manager’s perspective the recent gyrations have done little to calm nerves and now more than ever is the time for good housekeeping and firm controls. Constant monitoring of counter party risk is the order of the day combined with disciplined inventory control.

Just because a customer has always being reliable in the past is unfortunately no guide as to future performance. Look out for tell tale signs such as unusual ordering patterns, delays in payments etc.

The coming months will throw up many challenges but undoubtedly there will also be opportunities for those placed to take advantage of less efficiently organised companies.  Make sure that when the dust eventually settles that your company emerges in a stronger position.

I can assist you in this objective – view my profile http://uk.linkedin.com/in/gordonblackburn

To navigate these turbulent times, you need a steady hand on the tiller

I have an extensive business background in sales and business development. In addition to working at senior/ main board level in the UK I also have worked in both North/South America and the Far East.

Currently I am working as an independent business consultant but am looking for a hands on managerial role where I could more fully utilise my business background and contacts.

If you are looking to strengthen your management team then I would invite you to look at my profile at http://uk.linkedin.com/in/gordonblackburn or alternatively email me at gordon.blackburn1@btinternet.com and I will send you a copy of my current CV.

Show me the Money!

There is no shortage of ammunition for the gloom merchants at present. However, these current market conditions underscore the old adage that “cash is king”.

Just as was seen during the Great Depression of the 1930’s there are opportunities for those individuals and companies who find themselves in the enviable position of being positioned to operate in a cash-starved market.

There will be opportunities to acquire shares at very attractive levels whilst failing companies will be up for grabs at drastically reduced prices with the prospects for consolidation or spinning their assets for more cash.

 It sounds like a pretty simple model, but then,so are many of the best ideas.  

Financial Storm Warning All Areas - worth repeating

We are now in the “silly season” – the holidays are in full swing and a general sense of drift will be the norm for the next month or so.

However, the signs are that the last quarter of 2011 will be a difficult time for business as Consumers further reign in their spending. I would suggest that now is the time to tackle potential problem areas with some effective housekeeping.

How much inventory are you carrying? Rather than face a “fire sale” it may well be prudent to lighten up now with some innovative marketing.

How is your cash position? With the ominous backdrop surrounding both the Euro and the US Debt situation don’t expect the Banks to readily provide additional finance- it is an absolute priority to keep your Debtors under control.

Undoubtedly, the casualty rate will climb as we head towards the end of 2011 – make sure your Company doesn’t become part of these statistics

Management Style - a rethink?

In these difficult economic times we are constantly bombarded with negative news. As I move from company to company there is no doubt that this is having a significant impact on morale and therefore impacting bottom line results.

It is important that Managers take on board the efect of these outside inputs on Staff and wherever possible reduce the "fear factor". All too often I obseve the management style to rely on pressurising people to attain often unrealistic targets. Far from improving performance it has the opposite effect.

It is time for a rethink - instead of relying on the stick approach, how about hitting with a carrot?

Business problems? - Here's your answer

Experienced Independent Business Consultant working out of London - available for long or short term assignments

Check out www.glbconsulting.co.uk or alternatively for a copy of my current CV, email me gordon.blackburn1 @btinternet.com