Can I tell if a flower shop’s corporate subscription accounts are reliable?

Start with what is written down. Does each corporate account have a contract or standing order, and what does it say about renewal and cancellation? An account that can end with a phone call is weaker than one with agreed terms. Ask whether the agreements can pass to a new owner.

Then look at payment. Ask for the receivables for each account and see how promptly they pay. Frequent late payments, disputes or credits are worth asking about. Compare what is invoiced with what is actually delivered.

Next, check the relationship behind the account. Who at the company orders the flowers, and is it one person who likes the owner? If that person leaves, the account may go with them. A front-desk order tied to a company policy is steadier. With the seller’s permission, call a few accounts and ask how they feel about the service and whether they plan to keep it. Finally, consider the mix. A few big accounts may look good until one leaves. A spread of smaller accounts is often less exposed. Compare the list of accounts with a list of customers who stopped in the past, and ask why they left. If a pattern shows up, such as accounts leaving when a particular contact retired, you can then judge whether the same risk applies to those that remain.

Key takeaways

• Read each account’s agreement for renewal, cancellation and transfer terms.
• Check payment history and ask about disputes or credits.
• Find out who orders at each company and whether the account depends on one person.