Its that time of the year when “the Man (oops sorry Person) from the Big House” comes a calling, being a successful business means you have to pay your dues in the form of income tax. Its so easy these days a few clicks of the mouse and a Kings ransom vaporises into cyberspace. Its all relative a few years ago I was railing about it to the accountant when he fired back, “look at it this way” he said “at least you get to keep 60% of it”. Its a great comfort to actually have the money sitting there to pay secure in the knowlege that ones business is actually earning enough to generate a tax liability.
The one thing I find galling as a sole trader is the way the tax system seems to positively discriminate in favour of incorporated businesses, everyone tells me I could solve this particular problem by incorporating but I have never personally felt comfortable with the concept. I have all to often been on the receiving end of some fly by night shyster with their £1 company that runs up a load of debt before liquidating and starting up again the following day debt free.
I may be a bit old testament but I do not like that sort of thing, anyone who obtains credit ought to face the responsibilities that entails, I freely admit that there are genuine cases of customers where something goes catastrophically and unexpectedly wrong but that is a calculated risk that all suppliers must live with.
Better credit control is the key which unlocks latent profitability, it is so easy for a late payer to morph into a non payer if they perceive any slackness on the part of a supplier who is cavalier with credit. The in house credit controller who keeps up to speed with a moving map of debtors is a priceless asset, it is not an easy job but it is a vital element to success and long term survival.
Work has resumed a more normal pattern (hectic) after the previous weather related demand surge which knocked delivery schedules into a cocked hat. I am proud of my teams performance under very difficult conditions knowing full well that we performed better than many competitors on both delivery and price.
I have been critical of Boilerjuice recently over their claim to supply the “cheapest heating oil in Cornwall”, I wonder by what yardstick they make this sweeping statement? Claiming to offer fair prices and prompt delivery would be hard to criticise but a loud pronouncement to be “cheapest” is very opaque and misleading to potential customers looking for best value.
I always remember the pushy toff who opened negotiations by saying “now look here my man, company X is offering me oil at Appl but they cant deliver” my rather impertinent off the cuff reply” thats fine sir, actually today our oil is free but we cannot deliver either” at this point we both burst out laughing, he wound his neck in and we got ourselves a deal. In the corprate world such banter would probably cause apoplexy but the approach works for us long may it continue.
Prices have flloated back down to around the level at the beginning of the month, the still wonky economic climate will not allow anything other than minor opportunistic spikes that have invariably, and will continue to, run out of steam because of weak underlying worldwide demand. It will take more than a few days frost in balmy Cornwall to send the oil price too far north.
