Success in Business Series
I relocated to another city with my family. I was well known in my former location for my wrapper business. I was eager to start again. I took my wrappers and showed friends everywhere I went. I was so excited when a friend introduced me to a lady who worked in a multinational company and her husband was doing well in politics.
Wow, I was excited when she picked up lots of wrappers including other items sent in from overseas by a family member. Everything amounted to a six-digit figure. This was my big break in business or so I thought.
Four weeks down the line, no alert. I started calling every day as my supplier was also demanding payment from me. Excuses and stories every day. No payment. I started visiting the house till I was barred from entering. The poor security man would tell me, Madam said I should tell you, she is not around 😃😃.
I had to get other family members involved. After a series of threats and appeals, I only managed to get a paltry sum from this client to date. This is a business transaction that started over eight years ago……
This was my friend’s narrative of her business ordeal as we chatted. It’s a common scenario with most small businesses. Small businesses often make this mistake as they are usually scared of not making sales. A lot has folded up because of this.
Small businesses often extend credit sales to family and friends with the hope that they will pay. Hope is not a business strategy 😃.
They supply to other small dealers whose creditworthiness is not guaranteed.
They supply to supermarkets who promise to pay when the goods are sold. Who bears the risk if the products go bad or expire without being sold?
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Success in Business Series; Topic: Staying afloat in business
GS6 Mentorship Program
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