|
||||||
|
Beware Of Credit Sales Femi Olalusi, Email:smallbusinessmanagers@yahoo.com Poorly managed credit can kill a promising business, especially a small enterprise. Though capitalism thrives on credit, unchecked credit may send a small business to its early grave. When you sell in cash, you smile to the bank, and doing so continually makes you the toast of your bank manager.But when you encourage credit sales on a large scale, your cash flow becomes weak and you are incapacitated to meet your obligations. In fact, as a business operator you hardly can run away from credit sales, but what you should watch out for is the need to put it under your watchful eyes so that you don't wake up one morning and face the stark reality of bankruptcy. How then can I put credit sales in check? You ask. There are many ways you can do that, one of which is the choice of business or idea you invest in. The type of idea you select determines a great deal the way you run the enterprise. Before you invest a dime you have got to determine what product or service sells for cash and what sells on credit. Focus your attention on those that sell on cash and select from the pool taking into consideration the needs they meet and the availability of market for the product or service. The writer has observed that businesses, which sell on cash basis find it relatively easy to grow than the ones which deal in credit. When you deal on credit (particularly in this part of the world) you will be at mercy of the buyer. Like it is said, he has the yam and the knife in his hands. At times you might be pushed to the point of having to beg the buyer to pay up. Once the product has been used up, it becomes difficulty for so many people to honour their obligation. Thus a product or service sold on credit is a buyer's market while the cash sales business enjoys a sellers market to an extent provided the product meets a need and it is a necessity. Credit sales account for the reason while such businesses as bakey venture, the print media and egg sales find it tough to stand and yield good profit. As I said in the second paragraph, it is not wrong to grant credit sales, what we are advocating is guided credit sales, so that you will not one day find it impossible to forge ahead. Know the clients who merit credit facility and ensure a time limit is put on such gesture. A word is enough for the wise. Send sms or e-mail to the counsellor if you need more help.
OTHER ARTICLES IN THIS SECTION
|
||||||
Fraudulent Representatives: What punishment?
The Nigerian Judiciary lived up to its billing again on Tuesday, 11th of November, 2008 when the court of appeal sitting in Benin, Edo State, headed by Justice Umaru Abdullahi upheld the earlier pronouncementShifting The Paradigm Of Leadership In Nigeria's Healthcare Management (2)
Healthcare industry is staffed with several professional groups and non-professional intellectuals. Each of the employees, from clinical to financial, to engineering, to technical, to managerial/administrative will have the competence,Towards A Progressive Development
"Well, a man who has shackles on his mind is not going to have a free body. Until we are shorn of our superstitious and fetish ways, we still have a long way to go." A scholar, Ken, a member of Transparency ForumConversation of an Angry man
Perhaps some Americans are not as insane as we have been thinking that they are. They are slowly waking up to what we have always known and practiced all along - that marriage is a union between a man and woman.
Candour's Niche
When Will Change Come To Nigeria?
As America's President-elect, Barack Obama, wife, Michelle and daughters, Malia and Sasha, stood on the stage at Chicago's Grant Park penultimate Tuesday night to thank the good people of America
Scruples
The Stench From Bankole's House
When the toothy, exuberant young man from Ogun State, Mr. Dimeji Bankole, became the Speaker of Nigeria's House of Representatives following the shameful fall of his predecessor, Ms. Patricia Etteh
The Roundtable
Obama: Black Cinderella, New Dawn And Antichrist (2)
What propelled Obama's fairytale victory? Firstly, he refused to give the cold shoulder treatment to the Clintons, opting instead to smoke a peace pipe with Hilary.
Speaking Out
This week I took part in a workshop for legislative aides put together by the National Assembly and Strategic Network Systems Limited. The aim of the workshop was to enhance the effectiveness of
