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Jul 11

How Save Is Your Business From Creditors Owing Too Long?

credit selling

 

Sometimes doing business can be funny.

Isn’t it?

Of course it is

Not long from when you start a small or medium scale business do problems you never  anticipated begins to arrive uninvited.

Anyway that’s exactly what the entrepreneur do. i.e to solve problems.

Infact problems come to invite change. It is an indispensable tool to any worthwhile progress. I think that is what we are called to this world to do. With every problem solved, we grow in stature, in experience, knowledge and wisdom.

Because of the ugly synonyms attached to the word. Problem has become a bottleneck to many people and they are stucked in their own little world. They count it has insurmountable commodity and they are stalled on the bottom ladder of the pyramid.

How I wish I see someone waking them up from their slumber, that problems are indispensable in the journey to success. It is common in business place and to business people.

That’s why the entrepreneur called it CHALLENGE.

With that in mind, the heavy load becomes lighter and solution is found.

Truly “where there is a will, the way can be found”, it only requires you to search for it.

Nature has become so powerful that everything works  on certain Principle/Law/ Theory. The early philosophers have successfully proved these Laws to us through our Formal Education.

Financial Education Is Not An Exception.

There are two ways we learn in life and in business.

 

#1- DIRECT LEARNING:

This is a situation whereby we put our life in the laboratory as specimen for others. We place the whole being on a specimen table for others to the reading and learn which is otherwise known as experience. That’s what led to the popular saying that that

Experience Is The Best Teacher

because it gives the test before Presenting the lesson anyway.

#2- INDIRECT LEARNING:

This is a type of learning we have from the mistakes and experience of others in other to perfect our own life. After all, there is no point in making mistakes that others have made.

The latter is always safer and the best.

He who will not learn from the experience of others will have to use himself as an experience for others.

To Succeed In Business! Don’t Sell on Credit.

It’s shocking!

Isn’t it?

How do we do away with creditors? After all they are our customers and nothing ventured, nothing gained.

you can’t eat the stock yourself.

That’s the commonest diagnosis in our mind now.  Right?

You can Get it Right If You continue doing it wrong.

Wrong approach to business, will always yield wrong result.

Have you ever wondered why the banks go through a rigorous and vehement procedure when they want to lend out money?

The answer is simple.

It is better to be save than to be sorry.

Money is not an ordinary paper that should be squandered anyhow. It is a portion of your sweat stored in paper form which the economist call the Reward For Labour.

They want to be sure that they are save if at all the money is not coming back. That is the basis of collateral or guarantor. They will make sure what you are giving in exchange is equivalent or even bigger than the credit facility. They never give anything to chance, because business is all about diplomacy and not Intimacy.

 

Learnt Habit That Repel Business Success

Every thing we do in life is as a result of learnt believe system that either help or hurt us in some way. Savings is an habit while borrowing is also an habit. Living within means is an habit, living above means is also an habit. Selling on credit is not an exception.

 

Little known Factor about selling on credit.

When you set up a business system, you begin to attract all manner of customers that will patronize the business. We setup a business for two purposes; To create  and To Keep Customers including creditors.

The most reasonable approach is to alleviate the credit customers and increase the cash customers because from the rule of money; Cash is Better Than Credit, Anything is better than The Verbal IOU.

            The Best unique Selling Proposition.

On the surface it seems selling on credit and getting paid later is the best unique selling proposition;

conversely its the worst.

Research has let us know that 80% of business failure anywhere in the world is on account of THEFT, LOAN AND CREDIT SELLING. Many business that paralyzed within the first 5years is due solely to Selling On Credit.           

 

THE GREAT APPROACH

 

Find another means of rewarding your customer. Look at your own business very well, what is that new thing you can use to entice customer?

For an Automobile repairing Shop; it could be FREE CAR WASH SERVICE after repairing.

For Phone repairing Business; it could be a testing phone the customer can put his Sim card.

For Food Canteen Service; it could be a Referral Program i.e Refer 5 New Customer and Your Next Launch is Free.

For a Restaurant Business; you can claim PUBLICLY to the customers that “ALL DRINKS ARE COLD IF NOT GET IT FREE”

 

 

Example of Big Organization That Has Used Other Things As a Means Of USP

a) Network Providers:

The Network providers are excellent examples of marketers that has used many bait successfully to capture the interest of the populace. They have spark the interest of people by rewardin bonus airtime with little amount. E.g GLO, MTN, ETISALAT etc are very good . They will tell you to load certain amount t worth of airtime and you get 200% bonus of your recharge.

 

 

b) GROCERY STORES:

We have encounter an example of this many times. A situation whereby you go to a large Supermarket and you see the tag on the product as 50% off the normal price or buy one get one free techniques and anything you buy there are so cheap compare to the Conventional Shops.

c) ONLINE SELLERS:

Recently now, everything has become very easy because of the Ad event of technology. We now have many options of buying at the comfort of our home just a click away from our computer.
In few days the item ordered has been delivered. A typical example is the common JUMIA, KONGA and the likes. They create their unique selling proposition based on COMFORTABILITY of shopping and pay on delivery. This method makes the mind of buyer to be at absolute rest because without the order being delivered the buyer is not paying.

d) AFTER SALES SUPPORT:

This is an age long method employed by big Organisation in the world. The early adapters of this method is the IBM Computers. They recruit hundreds of technician throughout the world and they use the method as their Unique Selling Proposition. Customers flood in like Ocean. For instance, whenever any organisation ordered for any of their product, they will transport it to their place and install it for them. Anytime the product develop fault, they will send their technician to get it repaired.

Now that is what I know. Can you any Company that has thrive on account of Selling On Credit?

                          lets discuss in the comment below

 

 

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