“If you want to give a man credit, put it in writing. If you want to give him hell, do it on the phone.” Charles Beacham
I own an SME. Spike is one of the 97.4% of New Zealand businesses that have 19 or less employees. In my opinion, and contrary to what the media and Government might espouse, I believe Small to Medium Enterprise is the backbone of this country. It’s where the innovation and ideas come from. It’s an “I could do that better” attitude that leads us to go out on our own. It’s also an attitude I think is hurting this country but that’s for another missive.
Today I’m going to have a rant about credit and how we pay each other, or don’t. I really love to pay my bills on time. It is something I have worked hard towards from a time when I couldn’t. A time when it seeemed I had no financial intelligence at all. I learned a lot from that time.
I believe paying bills on time shows respect for the person or company who’s services you used. When I couldn’t do this simple thing it affected not only my credit but my reputation and business. It’s that important.
It seems to me we are a nation of business owners who on the whole think that 20th of the month following is a given. And sometimes just a target.
It’s not. It’s a dumb way of doing business that by limiting cashflow can have disastrous effects. And it does. The history of New Zealand is littered with businesses that could have been great but didn’t survive the first two years.
Here’s three things I think can help New Zealand businesses when it comes to credit:
1. Team. You need a good accounts person. One who is available every day of the week. Outsource it. There are plenty of great bookkeepers who work from home and work around their kids timetable.
2. Communication. Call the person you owe money too and let them know what’s going on and what you are going to do about it. Once the rules are set in place everyone feels a weight has lifted off their shoulders.
3. Get help. We need to admit we don’t know what we are doing earlier than we generally do. Business is not meant to be hard. There are rules, and people, who can tell you how you could kick arse. Find them. Find a coach who believes in you and what you are doing and listen. You might be barking up the wrong tree and knowing that sooner rather than later can save a lot of heartache. It can also show that with a few tweaks you could be world class.
I’m very passionate about business in New Zealand and the difference SME’s could make to the economy and well-being of this country. I hope today’s MondayMotivator prompts some action in you because I know you can make a difference.
Have a great week.
Three things I’ve found inspiring this week.