In these times, credit conditions are getting tougher. Suppliers are suspicious and look closely at new orders, so it is increasingly complex to attract new customers. Although these problems are suffered by all companies, they are especially critical for SMEs and the self-employed.
A good tool to weather this storm is the annual report, memory, or yearbook. This document puts in order and allows to assess the main parameters of the company. Although the regulations only oblige large listed corporations to prepare these documents, the advantages offered to an SME are several:
It is a point in favor that facilitates the negotiation with the bank or savings bank to request a loan, transmitting greater confidence.
It allows you to get closer to customers since your presentation or shipment is a hot spot to regain contact with them. At the same time, it conveys an image of seriousness and solidity.
It transmits value and security to the workers of the company that publishes it.
It generates trust in suppliers and partners related to the business (city councils, chambers of commerce, unions, etc.).
How much? Yes, okay. Sounds good to me, but will this cost an arm and a leg? A memory made to measure for a small business or a freelancer, including its content development, design, and printing, costs about 2,000 euros.
Very expensive? It depends. If with it we can expand the line of credit that we have with the bank, the investment will have been worth it. And if a couple of new clients hire us because our memory has given them confidence, it would also have been a good idea.
What information is collected in a memory? In the case of SMEs and freelancers, it is enough to collect the relevant data:
Index and letter from the president or manager.
The organizational structure of the company explained.
Relevant events of the year, business lines underway, etc.
Economic data for the year broken down according to the activities of the company: income, profits, own resources, etc.
Human resources and corporate social responsibility, such as environmental management.
Results from previous years.
Forecasts for the coming years and future business strategies.
Of all the above, there is one thing that is really important. It doesn't matter how much money is spent on making an attractive and modern memory if your company's data is bad: There is no good memory possible with devastating results.
With all this information, if you now had extra money in your business loan leads account, would you invest € 2,000 in making a report or would you use it in other things to improve bank financing and attract new customers? What would you invest them in?
