B2B business with SMBs
In the complex world of B2B business in India, there are several challenges that companies face, one of them being ghosting and difficulties in collections. Ghosting refers to the sudden disappearance or unresponsiveness of customers, leaving businesses in a state of uncertainty. This phenomenon can significantly impact cash flow and hinder business growth. Moreover, the collection process from small and medium-sized businesses (SMBs) comes with its own set of challenges, making it crucial for companies to navigate these issues effectively.
Ghosting in B2B
Ghosting can be a frustrating and all-too-common occurrence in the B2B landscape. It often happens when a customer abruptly ceases communication, leaving businesses unsure of the status of a deal or pending payment. This behavior can be attributed to various reasons, such as financial troubles, internal issues, or even communication breakdowns. Regardless of the cause, ghosting can have a detrimental effect on a company's financial health and overall operations.
Collections from SMBs
Dealing with SMB collections can be particularly challenging due to a variety of factors.
Lack of Financial Resources
Many SMBs operate on tight budgets and may struggle to pay their invoices promptly. Limited financial resources and cash flow issues can result in delayed or missed payments.
Inefficient Payment Processes
SMBs often lack well-established accounting systems and standardized payment procedures. This can lead to delays, errors, and confusion in the collection process, making it harder for businesses to track and receive payments on time.
Communication Barriers
Effective communication is crucial for successful collections, but language barriers and miscommunication can hinder the process when dealing with SMBs. Cultural differences and varying business practices also play a role, further complicating the collection efforts.
Today, I realized that we got ghosted by one of the long term customers of Exambazaar (Director of Trishul Defence Academy). He was communicating with us but kept on lying about the financial troubles, health issues in family and finally went cold. Obviously it doesn't feel great to waste time, energy and resources.
Hence, I have kept a principle of saying no very quickly to all sales and business development teams. With that clarity, any further efforts from them are purely their choice and investment of time & resources.