Images_Digital_Edition_September_2019

www.images-magazine.com SEPTEMBER 2019 images 53 KB BUSINESS DEVELOPMENT trusting it. Even then there will be disappointments from time to time. But don’t let this get you down – o ccasional disappointments are part and parcel of dealing with customers. In the world of small business, it ’ s very easy to cross the fine line betw een customer and friend. It wou ld be unusual to not encounter c u st omers with whom you have enou gh in common to strike up a friend ship. There are, however, pitfalls. I n a commercial relationship, is s ue s such as pricing, delayed payments, discount expectations, defective products or services and late deliveries can arise to test the relationship. In short, money can add volatility to a relationship, and a commercial relationship, by its very nature, is money based. If there’s a one-answer-fits-all solution to customer-friend dilemmas, I’ve certainly never found it. But at least I’ve alerted you to a potential problem — and forewarned is forearmed. How to disengage from bad customers The worst aspect of selling on credit is bad debt. It can catch you by surprise and is always infuriating, not to mention damaging. So damaging that, if big enough, it can break a small business. Careful vetting of customers and tight credit management are absolute essentials, but they’re still not iron-clad guarantees against bad debts. If you’re vigilant, you’ll likely spot the red flags (slower payment patterns or rumours of problems, for example), and you can react to avoid, or at least minimise, a bad debt. But sometimes you can be caught unawares — even a historically stable customer might suddenly go off the rails. The challenge is to keep these losses to a minimum. My best hard-earned advice is to follow your intuition. If that little voice is telling you to see the red flags and take action, do it! If discussions with the customer don’t calm your fears, cut off supply, take legal action or whatever other measures are appropriate, but don’t delay. Firing is a popular term used to describe the concept of showing unwanted customers the door. I subscribe to the concept but prefer the term disengage. It’s not good PR to have your business associated with aggression – aside from potential legal issues, word gets around. Shouting matches over the phone or rude email exchanges aren’t helpful either. You don’t want to commit defamation in writing or be recorded saying anything libellous. Instead, call or email, and tell the customer in polite language that your business has tried but is apparently incapable of satisfying his or her needs and that you are therefore terminating the relationship to allow him or her to deal with one of your competitors. Literature I have been influenced by the business literature on customers. It’s where I heard that customers who come only for a low price will leave for a lower price – something I found to be true. It’s where I learned to never assume that I knew what my customers wanted and to instead ask them what they wanted. It’s where I read how even small gestures of gratitude are appreciated by customers, and this inspired the candy-bars-with-every-delivery idea that brought us untold goodwill over a 20-year span. I recommend that all small business owners and intended owners develop the good habit of mining the business literature (books, articles, and blogs) for advice and ideas on customer management suited to their particular small business. A slate of great customers is a huge economic and psychological advantage – it’s well worth making it a focus of your business. Decide whom you want to do business with and do all that’s necessary to help them feel that they want to do business with you. As for the troublesome minority, remember that while disengaging from customers may seem counterintuitive, it’s a legitimate, albeit under-utilised, business practice. Characters Who Can Make Or Break Your Small Business is a new book from accountant and print industry veteran Michael Best that identifies the issues faced by small business owners and offers advice backed up by real life examples. It is available from www.smallbusinesscharacters.com and Amazon . customer care. Hiring front-line personalities naturally inclined to engage people in a sincere, intelligent way is a much smarter idea than issuing scripts. You will, of course, bend over backwards for great customers. It’s a necessary contortion we all undertake to acquire and retain desirable customers in a competitive market. Not only that, servicing customers well, experiencing their gratitude, knowing that you’ve made it easy for them to bring you return business, and turning them into word-of-mouth ambassadors is immensely satisfying to authentic customer service providers. Over time, your intuition in determining how far to bend over backwards for customers and potential customers grows, as does your confidence in