Small Business Credit Crunch Survival Kit

Small Business Credit Crunch Survival Kit - http://iandenny.blogspot.com Avatar Posted by iandenny under Strategy
From http://iandenny.blogspot.com 4117 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





Comments


Written by iandenny
4117 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.



Written by TimJustus
4117 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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Share your small business tips with the community!
Share your small business tips with the community!
Share your small business tips with the community!
Share your small business tips with the community!