Business letter format re

Concentrate on your Key Skills. Leave Credit Control to the Experts

Description:

Concentrate on your cash flow and save your business

Content:

I remember being about fourteen and my Granddad saying to me, “Just concentrate at what your good at Son”.

I was at the age, when those close to me were thinking about what training and career I was going to pursue.

At that age, we seem to receive the most words of wisdom, but my late grandfather’s simple words are as invaluable now as they were then.

We are all guilty of stretching ourselves too thinly at times. Often this is to save money and sometimes just plain ego.

Ego?

I knew someone recently who attempted to build and fit a wooden wall unit (with internal lights and DVD section) even though he had absolutely no experience or knowledge of carpentry

His ego was the reason he did it and after three months of intermittent blood, sweat and tears, not to mention about £700 worth of materials, it was time to call in an expert.

Two nights later and only five hours of actual work undertaken by an expert who was recommended, resulted in a superb new wall unit (with internal lights and DVD section) at a price considerably less than previously wasted.

What egotistical fool would attempt that?

Sorry Granddad.

So, is the same mistake of the wall unit replicated in business?

Let me put that question another way. Are there individuals running businesses with the ego to believe they can manage a process or part of their business that they have no experience of knowledge of ?

If you answered something like, “Too right” go to the top of the class.

The consequences of their actions can be far worse than the red face and bruised ego of my wall unit (with internal lights and DVD section) experience.

Individuals running businesses flushed with the adrenalin that only those who run their own businesses can appreciate, can very easily start tackling new elements of their business they simply do not understand.

As a result, mistakes are made.

Some may say that this is the learning curve of running a business.

This is undoubtedly true, but whilst riding the wave of these learning curves the business is at risk because people lose focus.

People start businesses because they believe they have the skills in a particular field to succeed. When those skills are used less and less, the key people lose focus, eventually the business loses focus and this can be extremely damaging and can often be the beginning of the end.

We have all heard the statistics about businesses failing. Well, for the sake of this article I contacted the DTI to confirm the figures for myself and found the following:

One in ten companies don’t survive the first year and out of one hundred companies starting today, there will be thirty five that won’t make it to year three.

I’m convinced that if these companies concentrated on what they were good at and where possible, outsourced the areas they weren’t, these figures would be dramatically improved.

As Tom Peters the business Guru once said, “Do what you do best and outsource the rest.”

Obviously, if you have a legal or tax issue you use the services of a Solicitor or Accountant

But what about the other areas that are not so obvious?

Let’s find out why businesses struggle. What is the main factor that causes these companies to struggle?

Far and away the biggest reason for companies failing is cash-flow. There are differing figures but it would appear that cash-flow issues account for at least half of companies failing.

Remember, you only run out of money once.

Above all other areas, the issue of cash-flow is the one process I would highly recommend is passed to experts.

Let me make it clear that I am not referring to financial schemes like factoring or invoice discounting or any arrangement via a financial institution.

I believe that a business should be in control of its own money.

What I am actually referring to is professionally outsourced credit control.

The nature of credit control ticks all the boxes of criteria for outsourcing.

The remit is very clear.

Your company provides a service, issues an invoice and payment is received into your bank within your credit terms.

If this essentially simple procedure is achieved, your business removes the single biggest hazard that threatens all businesses.

Outsourcing your Credit Control is quite simply integrating your ledger into an organisation that has greater skills and experience in successfully running credit control procedures.

A ready made solution without the headaches.

Outsourcing

So, you know now what to do. But what should you look for?

I have provided a checklist, that I think should ensure you make the correct choice.

► Outsourced Credit Control or Ledger Management is not debt collection.

The two skills are very different. Any company referring to their Credit Control as Debt Collection should be avoided.

(A genuine ledger management company will undertake debt collection but will have a distinction between the two services.)

► Choose a company that can provide names and contact details of their clients that currently use their outsourced credit control services. (Contact them)

► Choose a company that takes time to understand your business, your products, your service levels, your ethos and your customers.

► Ensure you will be provided with an Account Manager who is your direct line of contact and will provide regular reporting

► Ensure you have allocated Credit Controllers who will deal specifically with your ledger. Ask for their names and insist on being able to contact them at any time.

► Avoid paying up-front fees and ask for a choice of fixed monthly fee or on a No Collect, No Fee basis payment option.

► Communicate your targets and instigate regular review stages.

► Ensure the supplier develops a bespoke procedure dependant on your targets and sets up a process for all stages of the ledger (i.e what happens when a debt goes over 90 days etc)

Looking Ahead

The good news is there are some very good providers around. A simple search on the internet will usually provide sufficient options.

The benefits you achieve in improved cash-flow are clear.

Added benefits include not having to recruit new staff and the related tax burden, sick days and holiday pay that is associated with that.

Take my Grandfathers advice, outsource your credit control and go and concentrate on what your good at.

Author: Gregg Jones

About Author:

Gregg Jones at The Express Group in London. The Express Group are one of the most respected companies specialising in Outsourced Credit Control, Ledger Management and Commercial Debt Collection. www.expressgroup.uk.com

---

Random related phrase:

business letter format re

Misspelled random related phrase:

bbusiness letter format re, usiness letter format re, buusiness letter format re, bsiness letter format re, bussiness letter format re, buiness letter format re, busiiness letter format re, busness letter format re, businness letter format re, busiess letter format re, busineess letter format re, businss letter format re, businesss letter format re, busines letter format re, businesss letter format re, busines letter format re, business letter format re, businessletter format re, business lletter format re, business etter format re, business leetter format re, business ltter format re, business lettter format re, business leter format re, business lettter format re, business leter format re, business letteer format re, business lettr format re, business letterr format re, business lette format re, business letter format re, business letterformat re, business letter fformat re, business letter ormat re, business letter foormat re, business letter frmat re, business letter forrmat re, business letter fomat re, business letter formmat re, business letter forat re, business letter formaat re, business letter formt re, business letter formatt re, business letter forma re, business letter format re, business letter formatre, business letter format rre, business letter format e, business letter format ree, business letter format r