In business as in poker there are times when discretion is the better part of valour. Put simply, some of the best business eals are those you turn away.
All oganisations 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.
Obviously turnover may well suffer when stricter controls are in place over such elements as payment terms and credit limits.
The reward or 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.
Wednesday, 29 February 2012
Tuesday, 28 February 2012
Consumer confidence – the litmus test
One of the tests of the English legal system is “what would the man on the Clapham omnibus think?”- Basically this is the reaction to any problem or situation that could be expected from a reasonably educated and intelligent but non-specialist person.
In the current economic climate many companies would do well to ask “what does the man standing in the queue at the Clapham Supermarket checkout think?”
The problem is that many people running businesses (or for that matter senior politicians) are too removed from the realities of life to effectively understand the economic difficulties faced by the ordinary consumer.
It is a very easy exercise but a few minutes spent in the supermarket or on a garage forecourt will give a true insight into the problems and frustrations currently felt by the ordinary consumer.
Until such times as the man in the street starts to regain some confidence there is little chance of economic recovery gaining momentum.
In the current economic climate many companies would do well to ask “what does the man standing in the queue at the Clapham Supermarket checkout think?”
The problem is that many people running businesses (or for that matter senior politicians) are too removed from the realities of life to effectively understand the economic difficulties faced by the ordinary consumer.
It is a very easy exercise but a few minutes spent in the supermarket or on a garage forecourt will give a true insight into the problems and frustrations currently felt by the ordinary consumer.
Until such times as the man in the street starts to regain some confidence there is little chance of economic recovery gaining momentum.
Monday, 27 February 2012
Revving up the bottom line
When attempting to boost the bottom line there are 2 obvious courses of action, cut operating costs and generate additional revenue.
Many organisations opt to reduce Staffing numbers as a quick fix but there is a danger that in line with reduced personnel there is an accompanying decline in operating standards. In such circumstances customers often choose to vote with their feet.
The Sales Director only has one shot in his/her armoury namely increase sales. Sales targets can always be raised but a sense of commercial realism also needs to be applied.
If you are marketing a totally unique product or service the task is easier but for the most part there are many companies offering a similar range of products in a broadly similar price range.
In many instances companies would be advised to make customer service their USP but this requires the commitment of a dedicated work force not one that is pre-occupied with the spectre of further redundancies.
Many organisations opt to reduce Staffing numbers as a quick fix but there is a danger that in line with reduced personnel there is an accompanying decline in operating standards. In such circumstances customers often choose to vote with their feet.
The Sales Director only has one shot in his/her armoury namely increase sales. Sales targets can always be raised but a sense of commercial realism also needs to be applied.
If you are marketing a totally unique product or service the task is easier but for the most part there are many companies offering a similar range of products in a broadly similar price range.
In many instances companies would be advised to make customer service their USP but this requires the commitment of a dedicated work force not one that is pre-occupied with the spectre of further redundancies.
Friday, 24 February 2012
Relationship building
The rapid advances in technology have transformed the way we do business. Our everyday business tools would have been regarded as flights of fancy not so long ago.
With the unstoppable rise of e-commerce come challenges. Perhaps the biggest danger is the lack of personal contact between a company and its customers.
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.
All too often in the drive for greater operating efficiencies the relationship between
supplier and customer suffers.
We do not live in a perfect world and inevitably things go wrong it is at such times that the worth of good relationships are fully illustrated.
With the unstoppable rise of e-commerce come challenges. Perhaps the biggest danger is the lack of personal contact between a company and its customers.
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.
All too often in the drive for greater operating efficiencies the relationship between
supplier and customer suffers.
We do not live in a perfect world and inevitably things go wrong it is at such times that the worth of good relationships are fully illustrated.
Thursday, 23 February 2012
Low cost entry into the UK Market
Are you looking to launch or “power up” your business activities in the UK?
I have experience of starting up and managing UK operations for overseas corporations.
There are considerable opportunities here in the UK and with an already established sales and marketing operation (www.glb.consulting.co.uk) myself and associates can provide a low cost entry into this market.
In effect you could have all the benefits of a UK presence without the hassle and costs of commissioning and maintaining your own office.
Contact me
gordon.blackburn1@btinternet.com
I have experience of starting up and managing UK operations for overseas corporations.
There are considerable opportunities here in the UK and with an already established sales and marketing operation (www.glb.consulting.co.uk) myself and associates can provide a low cost entry into this market.
In effect you could have all the benefits of a UK presence without the hassle and costs of commissioning and maintaining your own office.
Contact me
gordon.blackburn1@btinternet.com
Wednesday, 22 February 2012
Greek tragedy postponed.
The latest “deal” to avoid a default by Greece has been done or as cynics might say “cobbled together”.Essentially Greece will get loans of more than
130bn Euros (£110bn, US$170bn) and have about 107bn Euros of its debt written
off.A substantial haircut for lenders in the private sector who face taking
losses of 53.5% on the value of their bonds, with the real loss as much as 70%.
In many ways the Greek crisis is a metaphor for our times. A customer develops a pattern of late payments but far from being called to order the supplier fearful of alienating the customer allows this to become the norm.
When the inevitable tipping point is reached there is no alternative to continue to support the errant buyer or risk realise a loss.
There is a real concern that the problem is just being kicked down the road.
Fortunately in the UK there is not the exposure to the Greek situation that other EU nations are carrying.
However as the international banking community prepares for another serious blow to its capital structure the UK banking community will not be immune. At the very least there will be a renewed focus on exposure and this will impact on their willingness to lend.
Now more than ever businesses must demonstrate that they have fill control over all aspects of their operations. Reporting procedures must be strictly observed and
any potential problem areas or customers brought quickly into line. As it
becomes harder to borrow, positive cash-flow is critical.
130bn Euros (£110bn, US$170bn) and have about 107bn Euros of its debt written
off.A substantial haircut for lenders in the private sector who face taking
losses of 53.5% on the value of their bonds, with the real loss as much as 70%.
In many ways the Greek crisis is a metaphor for our times. A customer develops a pattern of late payments but far from being called to order the supplier fearful of alienating the customer allows this to become the norm.
When the inevitable tipping point is reached there is no alternative to continue to support the errant buyer or risk realise a loss.
There is a real concern that the problem is just being kicked down the road.
Fortunately in the UK there is not the exposure to the Greek situation that other EU nations are carrying.
However as the international banking community prepares for another serious blow to its capital structure the UK banking community will not be immune. At the very least there will be a renewed focus on exposure and this will impact on their willingness to lend.
Now more than ever businesses must demonstrate that they have fill control over all aspects of their operations. Reporting procedures must be strictly observed and
any potential problem areas or customers brought quickly into line. As it
becomes harder to borrow, positive cash-flow is critical.
Tuesday, 21 February 2012
Digging deep to survive
The retail sector is particularly challenged at the moment as domestic spending is reined in. Facing continual squeezing of operating margin the quest is for innovative ways to drive sales.
The new buzz phrase in retailing is "multi-channel", loosely defined as a strategy that involves selling through stores, websites, mobile phones, catalogues, social networking sites, et cetera. Basically it is an all encompassing process designed to maximise sales revenues.
Not all business models can embrace this system but there has rarely been a time when the old adage of “work smarter” has been more relevant. As more and more obstacles are thrown up to threaten operating margins everyone in any commercial organisation must ensure that they are operating at optimum efficiency.
Retailers are pinning their hopes on “multi channelling” – but they are not the only sector having to radically re-think strategy in these turbulent times.
The new buzz phrase in retailing is "multi-channel", loosely defined as a strategy that involves selling through stores, websites, mobile phones, catalogues, social networking sites, et cetera. Basically it is an all encompassing process designed to maximise sales revenues.
Not all business models can embrace this system but there has rarely been a time when the old adage of “work smarter” has been more relevant. As more and more obstacles are thrown up to threaten operating margins everyone in any commercial organisation must ensure that they are operating at optimum efficiency.
Retailers are pinning their hopes on “multi channelling” – but they are not the only sector having to radically re-think strategy in these turbulent times.
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