Managing your own business is not easy. One of the crucial elements of conducting a business activity is gaining of proper contractors because they may contribute to development of enterprise. The conclusion of a contract with an improper business partner may be related to i.a. financial losses or even bankruptcy. What factors should be taken into consideration by entrepreneurs before their decision about establishment of cooperation with another organization?
Internet – source of information
According to the research conducted by Rzetelna Firma, Polish entrepreneurs believe that transaction is more risky when there are many negative options about a certain company in the Internet. Over 64 per cent of respondents pointed out this aspect. The owners of companies conducting a one-man business activity (almost 78 per cent) are more sensitive to unfavorable opinions in comparison to medium and big enterprises (48.7 per cent). Moreover, 47 per cent of participants of the study believe that the lack of information about a potential contractor is also suspicious. However, the distrust is less noticeable in case of existence of any scant information.
Unfortunately, companies do not appreciate the potential of the Internet. In spite of the fact that nowadays websites are simply a standard, 30 per cent of companies still do not have them. Our research and experiences of participants of the program show that care about good image in the Internet brings profits – it helps to gain new clients and increase sales. It is also worth taking care about good opinions and references of clients because it increases the credibility of each company. Especially if the practice is short which – as we may notice in the research – results in suspicion – says Waldemar Sokołowski, Chairman of Rzetelna Firma.
At the same time, positive opinions were the second and the most frequently pointed out argument contributing to increase of credibility of a potential partner. According to 84 per cent of respondents, the most often indicated factor which encouraged to establish a business relation was recommendation of companies or people having experience in cooperation with a certain enterprise.
Short period of activity
According to the research conducted by Rzetelna Firma, companies with a short period of business activity (less than one year) are treated with greater caution by business partners. Data presented by Central Statistical Office of Poland shows that only 3 or 4 companies survive on the market after their first year of activity. In result, there is 25 per cent likelihood while choosing a young company that it may declare bankruptcy during the effective period of an agreement.
On the one hand, it is understandable, everyone wants to survive. On the other hand, it is dangerous for the economy. If we do not give a chance to young people, we will not allow ambitious and competitive companies to develop and exceed the magical line of one year – adds Waldemar Sokołowski. It is worth mentioning that every fourth owner is afraid of establishment of cooperation with a young enterprise.
Managing your own business is closely related to risk resulting from economic and social conditioning. Caution and careful tracing of signals coming from the market will help to avoid many threats which may have a negative effect on a company.