Make Your Word Count

Another simple learning from the early days of Severn Delta in 2003.

We created Severn Delta by tearing 25% off the side of another organisation. It had never been a stand alone business. It have never traded separately. It was not a division. Less than that it was not even a department! And to top it all the organisation from which we tore was in Administrative Receivership.

So we had no track record. No credibility. No Credit rating. Credit insurance on us as a debtor? Don't be silly.

But because we took it on as a going concern we had orders that needed delivering, wages and salaries that would need paying, we needed to start trading so we needed raw material supply.

We bought some stock in the deal of course but this included too much of the stuff we had no urgent need for and not enough of what we needed yesterday.

We were in no position to pay for everything we needed up front so we had to sit down with the key suppliers and cut deals.

So our word had to count. If we said we would pay on the 3rd Wednesday when the Moon was in Jupiter that was EXACTLY what we had to do.

We demonstrated that our word counted by doing what we said we would. Without question. Without delay. Without exception. We built credibility step by step until we had the level of credit that we needed on an ongoing basis.

One supplier in particular gave us an exceptional level of support backed by nothing more than a handshake and bond of a few thousand Euros. Be clear: this was a mere token. A gesture. Less than half a percent of the annual value our trade with them.

But I gave the man my word and I stood by it. He has had four years trade as a result of taking a punt on us. Risk and reward. If you build it they will come. If you are not prepared to get you feet wet: stay away from the river.