We can only speculate at this point what government laws will take effect and how it will affect our economy this year.
Times are changing rapidly, and with the recent government shutdown, there’s no telling what else is around the corner.
The economic uncertainty of the last decade in the U.S. leaves many Americans with questions, including, “How will this affect my company?”
The best defense is to be proactive with what you can control. Look at your customer base and your accounts receivable portfolio for starters.
While you may already run credit reports for new customers, what about existing customers? Do you score your customers on an annual basis?
As demonstrated by the Retail Apocalypse and the rise of Amazon, things change. Businesses that were able to pay may be feeling a credit crunch and could be reaching a cliff soon themselves…into bankruptcy.
Tracking your customers’ financial status will help you identify those before they become delinquent. Score your current customer base every 6 months. It can save you time, money, effort and lessen the burden of delinquent payments.
Also, statistics prove that it costs less to keep a customer you already have rather than find a new one.
What about customers that you haven’t done business with in a while? Have you considered starting a marketing campaign to bring back inactive customers?
If you are looking at targeting older customers, how do you know that they are still in business or in good standing credit wise?
Taking a list of inactive customers and performing a credit analysis is a simple, cost-effective solution to find companies to target for business this year.
While nothing is certain but death and taxes, being proactive and following these simple steps can help defend you and your company from the uncertainties of 2018.
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