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- Key problems in Manufacturing Industry
- Problems of Startups
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Payment realization and customer acquisition problem
The ideation stage got over, with execution happening and then moving into market with acquiring the first fifty customers, which many people feel is landmark for a start up. Fine its nice but this happiness will not last long as the next cycle of payment realization comes into picture.
In India clients are god and god cannot be questioned. You one client who keeps nagging you with by saying will pay next week next week this goes on. You do not want to cancel it as you are hoping the client will pay but the delay in payment realization is making you to find alternatives to fill the gap of amount which the client was suppose to pay. This creates more problems which ensure you look out for other sources to meet the pitfall created by non payment of money in time by clients, so by the time the actual payment realization happens all your profits would have got vanished as you would have filled in money from taking on interest which will ensure all your profits are eaten by the interest.
This is the most tricky situation start ups come across, they do not put down there step and say sorry we are not going to continue with clients who don’t pay on time, this is majorily because in the process of customer acquisition you forget the basic rule if payment on paper is not realized its not payment. Major of start-ups are considered by clients are hungry for business so client takes for ride, start-ups being in the initial stages are ready to give time to clients hoping the good faith will prevail and payment will be done, as most of start ups would have worked on think margin to acquire clients.
Remember doing business for just the sake of proving a point does not make any sense, if any client is having payment problems its better to take him off rather than bear with him and bleed.