Tag Archives: marketing

Great detailed advice. Cash flow can make or break a small business. I know from my own experience and that of my clients. Run rates are a complex but necessary calculation.

Very good points. Unfortunately we have become very short term and self centered thinkers. Those with the greatest economic or political power will do what is necessary to gain and retain their control. This creates sub-optimal binary states that we fluctuate between rather than making long term gains for all.

This is a great post John.

I think it’s fair to say that most of us in the small business community have had to deal with gorillas in our respective industries. They are usually customers, but can also be competitors or vendors.

In the past year, we have dealt with many issues in which we have been dictated to by gorilla customers. One very large pharma company changed their terms to Net 90, another required us to pay a $2000 fee to order to do business with them, and another required us to pay for a system that they implemented that tracks their/our safety program.

In all three cases, the outcome could have hurt us as a small business. Net 90 terms could crush us on large projects, the $2000 fee was more than the profit we would have made on the project, and the safety program requires considerable time and effort on our part in order to maintain compliance.

In all three examples, we prevailed. Our relationship with the customers in all three cases was so strong, that all it took was a conversation with the local decision makers. They were sympathetic to our situation, and worked with us to come up with solution. In one case, they agreed to allow us to invoice them for all of the parts at the start of the project, giving us an extra 30 days, ultimately reducing the net 90 terms to net 45. In the other two cases, our local contacts allowed us to add the costs we incurred to the project.

In my experience, when you explain the hardship the gorillas policies place on our business; reason prevails and an acceptable solution is the result.

Happy Holidays,
Eric

Using the analogy between a handful of European countries and the population of small businesses is a great vehicle for driving home your argument for the importance of history in forming the attitude of a business, John. In so doing, you’ve offered a real thought-provoker to business owners/leaders. You’ve also given them an approach to open a conversation about company history and attitude with their employees. Thank you.