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Webinar series 6/6: No such thing as a brand new business
11 June @ 09:30 - 10:00
No such thing as a brand new business
Who? When? Why?
Backgrounding a purported new business and what to look for
When taking on a new customer, it is important for credit managers to determine the credibility of the company, particularly if it is a startup. Today’s new startup could be the “Amazon” or “Microsoft” of tomorrow. It could also be a “Phoenix”, a company that’s has risen from the ashes of failure. There is always a background to every newly formed business. That is what credit managers are principally looking for if they are approached by a new business.
Utilize Companies House records to determine set updates, directors appointments etc. Most importantly, has this director or directors operated other businesses? Did these businesses fail?
View startups with suspicion
Between yourself as credit manager and sales, determine the background of a company’s formation. Speak with the customer and it’s principals to determine if the startup has a strong business case or one which is doomed to failure. I would question the likely success of a new burger outlet set up next door to a McDonalds to use the extreme scenario. However, a bricklayer working 20 years for a building company finally decides to form his own company as a builder/bricklayer has a lot more credibility. This is how new businesses (genuine ones) form. Gaining experience in a certain field and using that experience to be their own boss, maybe doing something successful that their previous employer wasn’t doing?
Want to learn more?
Sign up for this last webinar of the webinar series Credit Management tips.