Series  |  Briefs  |  Quick tips  |  Basics  |  Other
Retail  |  Marketing  |  Products & Pricing  |  Other

Conventional Wisdom?

Posted On - 08/01/2016 09:55:07

Dough, wonga, lolly, moolah, bucks, loot, readies, dosh, lucre, bread - all of them words for money. And while it's not the purpose of business the better you are, the more of it you'll makeDough, wonga, lolly, moolah, bucks, loot, readies, dosh, lucre, bread - all of them words for money. And while it's not the purpose of business the better you are, the more of it you'll make.

But what if you could make even more money giving some of it away or even turning down business? Stupid? Well, if you take we staged a workshop at our 2015 Open Day all about these things, then no.

Join us in this blog to find out why we did it and what we covered.

Before we start

First things first. The Open Day session 'Critical Business Finance' was specifically targeted at businesses yet to VAT register and/or considering offering Trade Credit. We staged it to separate facts from fiction - because there are a lot of stories out there about these really important matters.

If you're already VAT registered and/or offer Trade Credit, this blog series may not be for you. That said, we've got several nuggets to share. So why not join us anyway?

Caught between the Devil…

VAT - aka "victimise all trade" - is the scourge of small businesses. Universally detested, the moment you register for it 20% of your price becomes tax. And you have to find the money to pay it. How? Put up prices and lose customers? Take a hit on profits to keep them? Maybe a bit of both?

We know people claim to run their business "under the threshold" to avoid VAT. We know others simply terrified of it. We've been asked if there are legal ways to avoid it and even whether it has to be paid at all (make no mistake: there aren't and it does.) None of this is good. It's irrational bordering absurd. Why? Because these people have got VAT all wrong.

All the rage

"I get it everywhere else…" "I need it for cash-flow." "I can't / won't do the deal without it." If you've ever found yourself pressured by business customers to give Trade Credit, you'll have probably heard comments like these.

So it can seem offering Credit is the only sensible option. That it has to be given. That if you don't you're the problem. But is providing Trade Credit a ‘must'? Is it something you have to do?

Giving and receiving Trade Credit is so common it's perceived as a "right". But in no way is offering Trade Credit a given. By the questions we get asked, we know people are being bullied into providing it. And by how seriously it's hit some we know people aren't going about it anything like the right way. They're putting their businesses at real risk. None of this is good. It's because these people have got trade credit all wrong.

Please tell us why you dislike this blog article?
Display Name:
Email Address:
Post comment?
I accept the terms and conditions set out here
Comments:
Post Cancel
Archives
February 2018 (1)
January 2018 (2)
December 2017 (2)
November 2017 (4)
Earlier (301)
Contact Us
Like what you've read? Then why not sign up to the Shop Talk newsletter?

Have ideas or want to discuss them further? Don't understand what's been written and need some explanation? If you want to talk, for whatever reason, we're happy to as well.

The best ways to find us are by email or by mobile:

01977 282 300 & choose option 5

Alternatively please call 01977 282 359 to speak to a member of our ShopTalk team


You have already signed up to the Shop Talk mailing list

Shop Talk: The only blog for small independent IT retailers and businesses

It's FREE. Join the Shop Talk community and get advice on how to build a better business.

Contact Name: *
Email Address: (privacy policy) *
What's your greatest Business Challenge?
New to Target?
Interested in our TRADE ONLY deals?
Yes No *
 
Please type the characters from the image shown



 

Thank-You!

You will receive a confirmation email, please click on the link to confirm your email address.

Thank-You!

You have now been added to the Shop Talk blog news mailing list.

Cookie Notification: by clicking accept you acknowledge that are allowing us to use a Cookie on your computer. To read our Cookie policy please view our privacy statment here.