Cash, Risk and Embarrassment
Today Michael’s Business Conversation is with Clayton Coke of PRMS Ltd. And this conversation raises a number of topics of interest to all entrepreneurs but will be of particular interest to any business owner who is concerned about cash flow in their business. The saying “Cash is King” is not new, but it stays as relevant as ever.
Cash, Risk & Embarrassment when the Debt Collector comes knocking on your front door. Clayton and Michael first met twenty years ago in a lift where they literally exchanged elevator pitches, on their way to a networking event. They embody the concept that networking is not just about trying to find your next client today, it’s about forming business relationships regardless of immediate benefit, and maintaining those relationships over time
Clayton’s expertise lies in debt recovery. And so naturally the conversation delved into the concept of risk. Risk-aversion is not a characteristic commonly associated with the entrepreneurial mindset. On the other hand, levels of risk are relative, and each person needs to decide what is realistic and comfortable for them. Clayton shares his views on the risks taken by different business owners. He and Michael talk about a number of well-known businesses such as Amazon, Airbnb and Karen Millen, comparing the very different kinds of risks incurred by their different business approaches, and how that has worked out long-term for them.
Cash flow
Cash is King, naturally, one of Clayton’s biggest concerns is about businesses taking care of their income. And he shares some tips with the listeners on how and when they should take action if their customers are not paying. He also makes a special offer to listeners of the show, so you need to tune in to find out what that is.
He stresses the importance of businesses getting paid for the goods or services they’ve delivered. He talks about the difficulty of managing this. And he compares the approaches typically used by British and American businesses, which are very different.
Michael and Clayton talk about the effects of Covid-19 and Brexit. How will these major events impact the economy in the rest of this year and longer-term? Clayton shares his views on how these effects are already starting to be felt and may show up further down the line. The two businessmen agree that while there is still plenty of money in Britain, the way individual consumers are using their money is changing. And this will no doubt impact businesses. If people are anxious about their financial future, they can choose to live (and spend) wildly—as seen in the Roaring Twenties after the last great pandemic. Or it can go the other way, as in the Great Depression.
Social media links for PRMSLtd.co.uk can be found on their site.
