We’ve all had them.  The customer that promises to deliver a significant boost to business; to lead to better things; to open doors.  But sometimes it doesn’t turn out like that.  Sometimes our customers throw their weight around, fail to keep their promises and do much more harm than good.

As a small business, though, getting a big customer is always good news – or is it?  Not if that customer changes the rules on you, ignores your contract and messes you around.  So how can you tell how your customers are going to behave BEFORE you invest your own business’ reputation in dealing with them?

Well, the good news is that there is a way.  We hear a lot about company “culture” – it’s something that runs right through a company and impacts everything that they do and everyone that works there.  So if there’s something consistently wrong in one part of the business, then it is a fair assumption that there’s either a culture where that’s OK or that the company itself doesn’t know that there’s something wrong.  Either of these is a HUGE warning sign.

unilever

Unilever was in the news this week when Tesco pulled all of its products from the shelves in response to a price rise caused by the falling pound.  Was Tesco’s reaction very aggressive?  Absolutely.  Was it a surprise?  Absolutely not.  A quick look at Tesco PLC (company number 00445790) on credithq.co.uk will tell you two things.  Firstly they aren’t particularly good at paying their bills on time (according to Dun and Bradstreet and Experian).  Second, they have been taken to court a lot and lost.

screen-shot-2016-10-14-at-11-40-20

And if Tesco behaves this way towards a major multinational, what do you think it will do when it engages with your small business?

So it doesn’t matter if you’re deciding who to have as a customer, a supplier, or an employer, check out who they are and what their culture is before you make the jump.  And avoid those nasty surprises.

PS, if you’re thinking Unilever comes out of this looking like the innocent victim, better check them too!

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