With any business, it’s important to follow the trends happening across the world and its various markets. From social media trends to changes in domestic or international markets, keeping an eye on the flow of money and interest around the world is a crucial factor in maintaining a solid bottom line. The same is true for your clients, and while you’re probably already aware of everything that directly impacts your own business, it’s prudent to consider the perspective your clients are facing at the same time.
When you service a wide range of clients, your revenue is tied to theirs. While a big boom in popularity or a lucky shift in the markets might signal big profits for the both of you, if things take an unexpected downturn for your client, then you might be facing a much longer wait for those outstanding accounts. By keeping an eye on the trends across several significant markets for you and your clients, you’re positioning yourself to avoid losses because you can preempt any potential downturn. By managing your at-risk financial ties a little closer, it will give you the opportunity to be more active in your client relations while also being more mindful of their ability to keep making their payments.
That said, without employing a seer or having an entire department dedicated to watching industry specific news channels, it’s not exactly reasonable to know what’s going on in every single area of commerce that you or your clients might be linked to. Instead, it can be useful to simply consider the indirect impact of things you see or hear in the news, in conversation, or through your various industry networks. For example, if one of your main clients sells wool sweaters and there’s a sudden disappearance of the world’s sheep or a knitter’s strike, they’ll probably have a bit of trouble making their usual payments. Real world examples will be a bit more subtle, or they might be filtered through a second layer. If your client sells silverware to boutique cheese shop, and the FDA decides that cheese imports require more strict regulations, silverware sales might slow down alongside the business of the cheese shop.
While restrictions on imports or sudden changes in the political sphere are usually cause for caution, it’s important to consider the different ways in which it might indirectly influence your own business. At the end of the day, if your clients aren’t making money, your own income could be at risk. That’s what makes a wide-view mindset so important. It can also be a healthy mindset to adopt when considering accounts that are nearing or already in collections.
While clients have a variety of reasons for going to collections, facing situations like this can significantly increase the chance that a client won’t, or will be unable, to pay you. When it comes to actually getting your money or hiring a professional collection agency to help you collect, time is of the essence. By looking forward and taking more than just your own surroundings into account, you can have a better understanding of the necessary steps you may need to take to secure your own income from debtors. If you notice these trends, don’t hesitate to contact us. If 90 days is approaching or has already passed, it’s time to contact your collection agency.