Week 56: Merchant Mayhem and Deceleration
Remember last week when I was saying you can open up a credit account with traders? Well, forget about it! After several applications both online and on paper, each and every one of those came back declined. It seems you have to hold a cash account with them for at least six months before they put it up for review. This allows for some credit history to be accumulated on your account before they give you the go ahead. In essence, they are vetting you to see how your shopping habits are and if you will be a good future customer. I totally get this, after all one has to build up trust in order to use this service. Sadly, I can't benefit from this right now but I'm certain it's something that will be available to me in due course. What startled me was even the cash account (where you pay as you go) got rejected. I'm not in the right geographical area?? But, I'm buying properties up north (I’m midlands based) and why should that matter? Surly cash is cash! Well they obviously don't want my money.
Tip: Open up a few accounts right now and in six-twelve months time they will upgrade you. So don't wait around and get the ball rolling asap.
Tip: Persist and try to join anyway, it is paramount that you start building some trading activity. Sadly the system isn't the best for new entrants.
Consequently, this has led to inevitable delays! and ain't nothing I can do about it. If it's not the weather, its materials, if it's not the materials, its delivery, if not delivery then labourers, sometimes a combination of all the above. We’re three weeks into the new year and sadly the last bit of work we did on site was just before the Christmas break. Seems early January is worse than the seasonal peak. Who would've known that. The thing that I can't get my head around is the constant highs and lows. As this was an auction property it was super busy getting through the purchase. With little time left to vet decent contractors. Then the busyness came to a sudden halt as we had to wait around for contractor start dates.
Although when they started, boy it felt like a fast train, running around getting supplies, approvals and making payments. Then comes the new year it seems everyone has gone into hibernation and we’re having to wait around for phase two of the ground work to start again. As entrepreneurs it's this stagnation that really kills us. We can do super duper busy but not standstill. We’re just not wired that way. This method of work takes getting used to. I have come to understand that even though my project might be significant to me, for the next person it's just another day at the office. Various work ethics from lots of individuals to balance is not easy. But, no doubt you will improve your communication/people skills by default.
Tip; During the slowdown focus your mind on getting other tasks done. That way you are never hanging around as there is always something to do.
Which leads me beautifully to the following quote and nicely summarizes this blog:
In Times of Peace Prepare for War, in Times of War Prepare for Peace…
Sun Tzu