SECURE |
Before you are ready to go, you need to think about the best way to reach your customers. If you have a product to sell, where will your customers buy it? Are there specialist shops or is it suited to mass distribution over the Internet? Many retail entrepreneurs have found success through internet-only channel strategies – the low overheads mean you can offer goods at rock-bottom prices. Consider customer buying patterns and habits and synergise your go-to-market strategy with them. If you are offering a business product or service – identify like-minded established companies who target the same customers and run joint awareness and lead-generating activities.
Prioritise cash flow
Protecting cash flow is the most important thing you can do to ensure your organisation’s financial health. Offering credit to customers is essential in today’s commercial climate but late payments are one of the major reasons companies go bust. An effective strategy starts from day one and works as an insurance policy against future bad debt. Intrum Justitia’s low cost and easy-to-use On Demand online tool is ideal for businesses without a dedicated finance resource. Apply to On Demand now.
Build your brand
You need to establish a brand for your business, which should ‘live’ in the mind of your customers. A strong brand produces a positive reaction or feeling about your company and makes people well-disposed to deal with you. The best brand specialists seek to truly understand the customer. This means getting out of the office and getting to where your customers are to understand their wants and needs.
Set procedures and stick to them
Draw-up a clear credit policy and commit to its consistent implementation. The core of the policy should include: requirements for delivery against invoice, solvency checks, credit limits and consequences of delayed payment (e.g. charging interest or suspension of deliveries). A specialist credit management firm such as Intrum Justitia will deliver a policy tailored to the individual credit risks for your business and your own financial strength. What’s more, it will act as a deterrent against late payment from your customers.