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Are you reducing risk

Malcolm Gallagher - Thursday, September 24, 2009

Hi Malcolm Gallagher here. Okay I've been off blogging for a while as we have had a very heavy video production schedule over the summer.

But now it is time to get down to it and this is part-rant, part-advice.

Government is trying to convince us that the recession is over and the sun will soon be shining . However sensible business people who live in the real world (you and me!) know that most of this is just political speak for their own benefit. The challenge is NOT the recession it is the RECOVERY time - and this one is set to be long and deep.

Often more businesses go bust during the recovery than during the recession. They may have cut back so far in the recession that they don't have the resources and capabilities to manage the turn-around. With credit lines tight, they have a problem.

And customers are nervous! Let me give you an example.


We have recently filmed (for our new online SpotLearn Suppliers Academy) the purchasing team at global company Drager Safety (they make amongst other things the breathing apparatus for fire brigades) and they told me that for the first time ever, they were undertaking credit checks on suppliers. They were nervous about their supply chain. Then I met again this last weekend with Peter, the purchasing manager, who told me that sicne we filmed him a few months ago, three suppliers had gone bust. Now he and his company, who are passionate about quality and make a life-saving product, cannot afford such problems and so are nervouse about all suppliers.

Now is the time for you to bring comfort to your customers. Tell them about your business, reassure them so they can get on with worrying about other suppliers. Oh, and this reassurance may just mean they will refer you to other opportunities!


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