Debt Collector – Cash, Risk & Embarrassment tips from Debt Collector Clayton Coke
- Cash, Risk and Embarrassment
- Twenty years after the elevator pitch
- Risk and the entrepreneur mindset
- Cash Flow
- Embarassament and Fear
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.
Twenty years after the elevator pitch
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
Risk and the entrepreneur mindset
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 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.
Embarrassment and Fear
Here in the UK we often find ourselves having to deal with embarrassment and fear if we have either got into debt or are chasing payment from someone. And the two things can end up being linked. If a business owner is not effective in securing payment from their clients, they may end up in debt themselves in order to stay in business. For example, the construction industry is full of small contractors who have to buy materials for their next job while still waiting on payment from their last one. So they rely on lines of credit to keep going.
Above all, Clayton stresses that his job is not—as some people fear—about turning up on a customer’s doorstep and demanding payment. His approach is about ensuring that the supplier is paid for whatever goods or services they have provided while protecting the client-supplier relationship wherever possible. By introducing a third party to handle the problem, the business owner is spared the embarrassing ordeal of chasing a non-responsive client. And a professional debt recovery service is more effective in dealing with the client payment problem because that is their job, they know exactly how to approach it.
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.
Michael CraneEntrepreneur, Business Owner, Presenter
For the last twenty years, Michael has built and run a successful business. He’s learned many lessons—some of them the hard way—and he’s met and talked with many other businesspeople. He’s sold thousands of products and learnt the one hundred and one things needed to run a thriving business. Now he’s bringing this knowledge and experience to educate, motivate and inspire other entrepreneurs.