Page 30 - BOSS Today Issue 5

BUSINESS ADVICE

CHOOSING

THE RIGHT

CUSTOMERS

Red Flag Alert can help your business in a critical area

ew industry sectors have the with which it’s safe to trade, and one, you should actively risk-manage the
breadth of relationships that two or three red flags for those best relationship by regularly assessing
Fthe Office Supplies industry avoided. their creditworthiness: monitor
enjoys. This ranges from small and its performance and check to see
medium sized enterprises to multi- Reducing risk whether they have received any
national contracts. “The office supplies industry CCJs, High Court Writs or petitions.”
However, these relationships can shouldn’t be trading with risky Mark adds that the fundamental
vary considerably, and in a way that customers if at all possible,” says risk to companies often stems from
is unique to our industry. It is this Mark. “Once you have a customer, local relationships. “There is a trickle-
factor which has prompted Mark down effect from a significant failure
Halstead, Operations Director at Red Benefits to within the local business community;
Flag, to embark on a new campaign BOSS Federation if that failure forces several other
encouraging firms to be aware of the Members using companies out of business then the
creditworthiness of their customers Red Flag office supplies sector suffers because
and prospects. of their local business relationships.
✱ Unlimited access to risk “Boss has already educated its
Interesting times monitoring members to stay cash-flow positive.
As he points out, such a service is ✱ Unlimited access to Lenders are unlikely to support busi-
actually more timely following the business reports ness in troubled times, so you need to
official end of the economic down- ✱ Demographic and know you can survive the fall of some
turn. “We are heading into uncertain sector searches to debtors within your locality.”
times,” he says. “Normally after a energise your new Ultimately, prevention is better
recession, insolvencies rise over the business campaigns than cure. Mark concludes: “Red Flag
following three to five years. That ✱ Fully functional sales Alert encourages sales and marketing
means choppy waters for everyone. and credit management teams to target creditworthy compa-
“It’s essential that companies keep tool nies and develop new relationships
track of all of the organizations they ✱ Discount rate for only with healthy businesses. And
do business with from now onwards unlimited access that must be worthwhile.”
– in order to minimise risk with new throughout the year
and existing customers.” ✱ Three service levels to n FOR FURTHER DETAILS
Begbies Traynor’s Red Flag Alert suit your business needs PLEASE CONTACT STEVE
profiles companies with dynamic ✱ Training and ongoing WALKER ON 01676 526 050
search terms, providing a rating of support, and a helpline or EMAIL redflag@bpif-
gold, silver or bronze for the firms financialalliance.com

30 BOSS TODAY | October 2010

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