Hi Readers,
I have often used this insight to train my sales reps to understand their business eco-system and to take corrective measures before its too late for them and the business as a whole.
Time to share my insights with you all.
- Changing payment patterns. If the customer asks to delay payments from 30 to 45 or 60 days, be wary.
- Shifty buying habits. Customers may be paying on time, but are they still buying?
- Constant nitpicking. Normally quiet customers suddenly come in with a flock of demands.
- Watch cash flow. If you have access to your customers financial statements, watch the cash.
- Large accruals. Distressed firms tend to have more on their balance sheets.
- Tight lips. A normally-open firm suddenly clams up.
- High Day Sales Outstanding. Watch if your customer suddenly has trouble collecting his receivables.
- Managerial shuffling. Watch out if you see C-Suite musical chairs.
- Persistent rumors. Too often they are true.
- Tax liens. If a customer starts racking up tax liens, it’s a clear sign he’s going under
