Small Business Credit Crunch Survival Kit

Posted by iandenny under Strategy
From http://iandenny.blogspot.com 5880 days ago
Made Hot by: on March 18, 2008 7:56 pm

After going bust, and seeing the credit crunch on the horizon about to turn towards small business, here's a few tips for what to pack in your small business survival kit

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Comments

Written by iandenny
5879 days ago

Tim,

I agree. Credit should always be handled carefully. I was trying to make a point that because it's a recession, those offering credit will stand out as different.

You do need to use a combination of credit-checking and also adding a premium to the product price to cover a percentage of write-offs and still make your required profit.

And yes, the sale of tangible products hurts more when you've born a cost. Time does have value though if you offer a service. Once it is consumed, you have paid for labour and have an opportunity cost that cannot be recovered. So I'd still take the same precautions.

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Written by TimJustus
5879 days ago

A good way to approach dealing with the recession. However, I'm not sure if I agree with the credit strategy if you sell products (services maybe). Desperate times create desperate people and you don't want to be holding the bag when your well-credit-checked client decides your the vendor he's not going to pay. At least be very careful with who gets credit.

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