Wednesday, November 12, 2008

It is critical that you review how your customers/clients are affected by the financial crisis

The hard part for professional advisors going into the future will be allocating their time between clients who are cot-cases and clients who are moving to screw the most out of the opportunities that confront them.
You see, many clients are going to need our help coming to grips with tight cash flows, reduced credit availability, reduced margins and reduced sales. this should be our bread and butter but of course it is a two-edged sword because their capacity to pay will in many cases be limited.
But in other cases we will find that some clients are going to be going gang-busters keeping up with the increased sales and new opportunities they will be evaluating.
We must keep our heads screwed on carefully and allocate our limited resources carefully between these 2 areas .
Because the worst thing that could happen is that we spend all our professional time on the ones that are doing it tough at the expense of those who will increase our fee base substantially in the near future.
Having said that this will be a concern for professional advisors it will also be a concern for most businesses.
All businesses need to consider what industries their clients are in and whether they are likely to reduce their orders.
Lets say that you were a major supplier to ABC Learning Centres, by way of example, you would need to be looking carefully at their impact on you if they do end up going under. What should you be doing to cover the risk to your business?
Don't delay this exercise whatever you do!

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