An Exercise In Distrust: Could Skepticism Save Your Company Money?
You may have realized by now that trust is a big deal in the business world. You wouldn’t have gotten started if you didn’t trust in your business idea. You wouldn’t have gotten things off the ground without trusting your team to work. Getting the best from your workplace also involves proving your team can trust you in return. When you look at it that way, a business can seem like an elaborate trust exercise.
The trouble is, trust becomes problematic where money is concerned. If you trust without question, you could end up costing your company serious sums. In extreme cases, putting faith in the wrong places could lead to the loss of everything. That’s enough to put any entrepreneur on high alert.
That doesn’t mean you should do away with trust altogether. A complete lack here can be as dangerous as giving it away without a thought. Instead, you need to realize when trust is and isn’t warranted. Within your working team, for instance, a willingness to trust is critical. But, the same can’t be said for every area of business. Read on to find out when distrust could end up saving you.
Don’t take a company’s word for it
Irrelevant of your chosen field, the chances are that you have to work with outside companies. In most cases, this involves buying stock from suppliers or relying on external delivery companies. Even in office businesses, companies may rely on computer program and ERP suppliers. Over time, you do need to trust that a company will deliver reliable services. They also need to trust that you’ll pay up on time. But, it’s also important to note that companies are operating with their best interests in mind, not yours. As such, they may lie about being the best, without considering your company. When it comes to buying stock, your best way around this is to shop around for yourself. Even with computer and ERP systems, you should contact ATB and other companies like them to ensure you’re getting the best deal. Otherwise, you could fast find yourself stuck in an expensive contract here with no way out.
Don’t assume a customer’s good for the money
This should go without saying, but it’s important to reiterate the point. Often, we get our wires crossed here. Isn’t it essential to create trusting relationships with customers? Of course. But, there’s a difference between building loyalty and throwing money away. What’s worse, the latter could see your reputation failing, and your chances of loyalty going with it. The main thing to bear in mind is that you should never part with products until you have the money. Even if you take orders in advance, never trust that your customers will pay up. Always ask for a deposit ahead of time so that you have at least some security to help protect your financial future. Otherwise, you could fast find that any profits you do make only just cover the gaps on losses like these.