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Off Topic New Business - Advice

Discussion in 'Hull City' started by Wildie, Apr 25, 2017.

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  1. Wildie

    Wildie Well-Known Member

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    Hi Guys

    So in the last 8 weeks or so I have set up a business in an industry I have worked in for a while. We supply Barcode Scanners, Rugged PDA's, Label Printers, Ribbons/Labels etc. (so if you work somewhere that uses them I would be keen to know who to speak to!!)

    I was wondering if you guys had any advice when it comes to determining whether I should offer a customer 30 day payment terms, or to ask for payment upfront? There are a few sites you can get this kind of information from, but wondered if anyone on here would be able to reccommend one?

    Also - any do's and do not do's when it comes to running your own business? All views welcome!
     
    #1
    Wildie, Apr 25, 2017
  2. Kempton

    Kempton Well-Known Member

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    Don't piss your customers off <ok>
     
    #2
    Kempton, Apr 25, 2017
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  3. PLT

    PLT Well-Known Member

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    Don't let them tell you how to run your - you know what, I don't see this thread ending well.
     
    #3
    PLT, Apr 25, 2017
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  4. Happy Tiger

    Happy Tiger Well-Known Member

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    Ignoring the trolls, and being serious, have a chat to OLM as I'm sure he knows a thing or two about setting a business up.

    It'd be nice for a youngun to listen to him too.
     
    #4
    Happy Tiger, Apr 25, 2017
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  5. bum_chinned_crab

    bum_chinned_crab Well-Known Member

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    Buy low, sell high.

    You're welcome.
     
    #5
    bum_chinned_crab, Apr 25, 2017
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  6. GLP

    GLP Well-Known Member

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    30 days credit would be an expectation. People do take the piss though and always pay late. Is yours the kind of business that will get frequent repeat business?

    Maybe offer 30 days with a small discount for early settlement.

    Always be prepared to go the extra mile - good customer service goes a long way in my opinion and word of mouth is the best advertising you'll ever have.
     
    #6
    GLP, Apr 25, 2017
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  7. originalminority

    originalminority Well-Known Member

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    Deep dive.
     
    #7
    originalminority, Apr 25, 2017
  8. originallambrettaman

    originallambrettaman Mod Moderator
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    If it's standard in your trade to offer 30 day terms, then you'll have to do the same, or people will more than likely just buy from elsewhere (though increasingly, with the sort of products you're selling, it's price driven and sold online, where it's easier to get payment up front).

    In my business, it's standard to have 30 days net as standard terms with 5% discount for 7 day payment, though there's a lot of cowboys in my game, so I do have some customers on pro-forma only (something that only works if there's a high demand for your product, or you have something that people can't buy elsewhere).
     
    #8
    originallambrettaman, Apr 25, 2017
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  9. The B&S Fanclub

    The B&S Fanclub Well-Known Member

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    You can always 'debt factor' your debts, but you'll take a hit but at least have some money for cash flow...Most businesses that fail in the first year blame debtors who don't pay on time and this results in cash flow problems..ie you still have to pay your creditors, but I guess you already knew that...
     
    #9
    The B&S Fanclub, Apr 25, 2017
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  10. originallambrettaman

    originallambrettaman Mod Moderator
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    Unless you're taking a big risk or have substantial turnover, factoring is more expensive than it's worth, particularly as the factors often won't give you a credit rating on the customers you most need the credit rating on.
     
    #10
    originallambrettaman, Apr 25, 2017
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  11. Wildie

    Wildie Well-Known Member

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    we looked into factoring, but opted against it as they wanted us to put every invoice through them which we didnt want to do. We have a good credit limit with our Distributor but if we took a big order that exhausts that credit, we could use factoring to pay some money off with our Distributor to free up some credit. Lloyds wouldnt allow that so we just decided to continue as we were
     
    #11
    Wildie, Apr 25, 2017
  12. The B&S Fanclub

    The B&S Fanclub Well-Known Member

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    Fair point...
    Wildie, there are some organisations who will give you business advice free of charge...eg Trade associations and HMG bodies...
     
    #12
    The B&S Fanclub, Apr 25, 2017
  13. Kempton

    Kempton Well-Known Member

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    I hear the SMC are looking for some decent barcode scanners...
     
    #13
    Kempton, Apr 25, 2017
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  14. Mr Hatem

    Mr Hatem Well-Known Member

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    The best advice is to seek professional advice and don't take notice of the ignorant twats on here.
     
    #14
    Mr Hatem, Apr 25, 2017
  15. Plum

    Plum Well-Known Member

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    As a new business I'm guessing you don't get very favourable payment terms from your suppliers so whatever payment terms you impose on your customers you must be ruthless about chasing debt. I've worked in that industry and yes 30 days won't upset or surprise anyone.

    Are you supplying 'solutions' or just hardware? What I mean is might you supply something that consists of (a) some hardware, (b) some software, (c) some consultancy, all over an extended period. If so you might want to think about staged payments, eg 10% upfront, hardware on delivery, software on acceptance, consultancy on a month by month basis, that sort of thing.

    If customers see you as a new, small company they may well try and bully you. Resist!

    Good luck!
     
    #15
    Plum, Apr 25, 2017
  16. The Omega Man

    The Omega Man Well-Known Member

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    My advice is to ensure that you have a clear and robust Retetion of Title All Monies clause within your terms and conditions.
    I would also reduce risk by using a credit reference check.
    As far as 30 days. It has to depend on the credit check.
    Factoring is not a good way to start. Reduce your stock holding to the bare minimum. No point in having huge stocks taking up your finances if you can supply and restock quickly. You have to find the balance between getting discounts for volume orders from suppliers against the cost of borrowing. Sometimes it is cheaper to buy at full price rather than to borrow to buy at a discount. The number of overstocked businesses I visit as an insolvency agent is unreal.
     
    #16
    The Omega Man, Apr 25, 2017
  17. Wildie

    Wildie Well-Known Member

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    The ones at the stadium are useless
     
    #17
    Wildie, Apr 25, 2017
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  18. Plum

    Plum Well-Known Member

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    If we ever meet remind me to tell you about the time I visited a Woolies warehouse in Rochdale, unreal doesn't begin to describe it!
     
    #18
    Plum, Apr 25, 2017
  19. Chazz Rheinhold

    Chazz Rheinhold Well-Known Member

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    Get a really fit secretary/assistant/cleaner whatever.

    That way you'll save a fortune on not getting married <ok>
     
    #19
    Chazz Rheinhold, Apr 25, 2017
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  20. Sir Cheshire Ben

    Sir Cheshire Ben Well-Known Member

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    I'm available, part time.
     
    #20
    Sir Cheshire Ben, Apr 25, 2017
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