Fiscal 2006 has finally drawn to a close. And, despite all the number crunching and the pressure on meeting sales figures, most of the players in the IT channel would like the way the business closed at the end of the year. India’s IT sector is booming, and as direct players in the trade we have reaped the benefits.
But a boom is a double-edged sword. For, it also attracts the rouge players into the industry. Evidence of this was the number of scams that came to light last month itself. It looked like the Indian IT distribution channel provided a lucrative hunting ground for fraudsters. Everyday there’s a new scam unfolding and everyday there’s someone who has run away with the booty.
As a player in this industry, do you ever wonder when you will be the next victim? And how would you avoid falling prey to the deceiving ways of a fellow channel partner? There are no simple tips available on how to identify a robber. But there are precautions that can be adhered to. Do not do large business with someone who has no track record. Do not buy more than you can sell. Do not over-commit to distributors or manufacturers. Do not panic… the list can go on and on. The points are not new, but neither are they followed.
Most distributors lament that they cannot assess the credit-worthiness of a partner because of the lack of financial data. Most channel partners do not even have a balance sheet and just a handful of them file tax returns. If we as businessmen do not realize the importance of running the business professionally, then how is the channel ever going to get professional in its business dealings?
Today, even the neighborhood baniya has evolved into a mini-supermarket. Don’t you think as people in the IT trade, it’s time to deploy the benefits of IT to grow your business?