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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
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.
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.