Doing business online may be the savior of small companies

How many times have you heard the sad story of a company that was set up around a few good ideas, talented, innovative and hard working people who had very little working capital. Too many of them were eventually squeezed to death by cynical bank managers who refused to lend them sufficient working capital and even more so by customers who refused to pay their bills within a reasonable time frame or went under without paying them at all.

Nowadays the rules of the game have changed and for the better. More and smaller, usually family run enterprises are abandoning these onetime conventional business practices and moving directly to an online trading entity where they deal on a one to one, if not face to face, relationship with the consumer in what is a win win situation for both parties. For too long, one of the biggest overheads for any business was the cost of granting credit to customers, and this can be no more. The considerable time, money and energy spent arguing with the bank for more time or with customers for them to pay their bills will be much better invested in establishing a viable online presence.

More and more consumers are becoming internet savvy, and with every penny counting these days, the considerable savings in cost is appreciated.
Not only that, by doing business through the internet, the World has become their oyster as it is possible to drop ship items all over the globe at little cost.

Hopefully as the economy continues to improve and recover larger numbers of the next generation of entrepreneurs will recognize what the internet has to offer their business and adopt this route to success, without all the headaches and obstacles that the UK economy has placed in their paths for years now.

Setting up an online store is not the uphill struggle it was even two or three years ago, and requires little in the way of upfront outlay. In today’s climate of extended payment on invoices and cash flow squeezes it is certainly worth considering.

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Tags: British Economy, Credit Crunch, Recession