Welcome to the first Newmarket Partnership E-Zine!
As we head into Christmas we are launching our E-Zine. We aim in the current climate to provide our clients, friends, and readers with real practical assistance on a regular basis. This will build on our CURVE programme which we launched in our last newsletter. To date we have received tremendous feedback where users have seen real practical benefits from implementing the programme.
The essence of the CURVE programme is to ensure you come out of this downturn in a better position to take advantage of the upturn. It is practical, flexible, and focussed on the owner managed business.
As a reminder on the programme click CURVE . However in short it stands for:
C. Cash-flow. Get it in balance
U. Undo your expectations. Since launching the programme most people have by now had to change their expectations. Five months is a long time!!
R. Right-size your business. Work out what level your business can and should trade at and make the necessary adjustments. When you combine this with Vision below you will aim to produce a first class strategy for the future.
V. Create a Vision for the future of your business. Opportunities arise in these times of change and the companies that stay stronger than the competition will see opportunities arise.
E. Become Efficient & Energise your business & People. Get your people on board and engaged in the plan. Look at ways to improve efficiency through use of IT and cutting out wasteful practices. In this issue we will look at first rate credit management policies. Below is a checklist of practices that need to be adopted in order to ensure your cash-flow remains strong.
We hope these help you deal with the challenging times.
In this issue we will look at first rate credit management policies. Below is a list of additional procedures and policies that could be implemented as part of current credit control policies. These practices need to be adopted in order to ensure your cash-flow remains strong. We hope these help you deal with the challenging times. If you need further information or guidance please contact us, info@newmarket.ie or contact Gerry or Gary on 01 429 3600.
Tough Times Credit Policy Checklist:
| Item | Action | Who and When will make the change? |
| 1. | Review existing clients and reset Credit limits. Set procedures to ensure that breaches in limits result in action at higher level |
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| 2. | Teach your clients new habits. Offer incentives to bring account back in order. |
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| 3. | Ensure staff are trained in credit management techniques |
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| 4. | Ensure sales staff are involved in checking credit position before agreeing sale and reward them for cash collection and not just sales |
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| 5. | Get rid of cant pay/ Wont pay customers |
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| 6. | Monitor all customers’ performance through having regular meetings with credit control staff and agreeing action plan. Reward staff for cash collected, and level of overall debt ageing. |
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| 7. | Examine level of credit notes. Isolate the reasons why and implement changes |
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| 8. | Hold staff meeting and invite suggestions on how cash collection might be improved |
In the coming weeks and months we will provide further practical tips on how you can bring about real change. We plan to tackle overall cash management policies and employee remuneration schemes. If you would like to know more about the CURVE programme you can contact us at info@newmarket.ie
Did you know … that you can gift a voucher to employees to the value of €250. This can be part of their remuneration, the employee has no tax deducted and the employer has no liability to employers PRSI. This is a revenue approved scheme. The two rules are that it must be done once a calendar year and it must not take the form of cash payment.
If you know anyone who may be interested in this email, we would be pleased if you would pass it to them on our behalf.
Newmarket Partnership would like to take this opportunity to wish you and your family a very happy Christmas and a peaceful and prosperous New Year.
P.S. Do you have topics you would like us to address? If so email us info@newmarket.ie
“The Chinese use two brush strokes to write the word 'crisis.' One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger - but recognise the opportunity.” Richard Nixon
