Ian Harrison, a 36 year old caterer from Portmore who has been running his own lunch-delivery service for the last five years, says that collections is very challenging and has become even more so since late 2008.

"Believe me, I am having a lot of problems, with collections, even more than when I started. Persons are not honest. They are delinquent. When they are laid off or leave their job, they don't decide to pay," he said.

"When the Azan store in Portmore was closed down - laying off 35 workers - only three persons paid their bill. I lost $37,000 and that was a big deal for me."

But Harrison says he is not fazed. Instead, he has put in place new strategies to reduce money owed to him.

"I decided to credit less and to bill persons who are crediting now," he said.

The caterer started his business in 2005 when a hurricane forced the closure of the restaurant at which he was employed.

Breakthroug

After thinking about his dilemma, Harrison considered the idea of jerking chicken on weekends, but he was an Adventist with a weekend curfew and could not sell on Friday nights.

Other business ideas passed through his mind, but they required cash inputs he did not have.

The breakthrough for him came when his aunt in Queens, New York, sent US$50 to do maintenance work on her house in Spanish Town.

The sum amounted to J$3,500 at the time and he decided to borrow it to start the business of preparing and selling lunches.

Harrison was encouraged by a sister-in-law who promised to take lunch orders for the SuperPlus supermarket near his home.

He started on a Wednesday, selling on that day lunches amounting to the same $3,500 he had put in.

On the Thursday, sales were the same. However, on the Friday, by which time word of his meals had spread, sales almost doubled.

With $7,500 in hand, he made his first major purchase of materials at a local wholesale and stocked up.

When individuals in the plaza near where Harrison lived started asking for meals on credit, he saw this as an opportunity to establish his business.

Sales were quite good until workers started disappearing with money or would leave their jobs without paying.

Operates from home

Still, the caterer continued the service of requiring payment on a monthly or weekly basis because this gave him an advantage over nearby restaurants and fast-food shops.

"I have continued because this is what I wanted to do for a long time, but just did not have the means. I was able to pay back my aunt."

Harrison has continued to operate from home, avoiding rental charges that range from $40,000- $80,000 - costs which, he states, would wipe out his profit.

He says that he has managed, in spite of rising input costs, to combine high quality with competitive pricing. He also changes the menu every day.

Change in input prices

The regular change in input prices is frightening, but again Harrison says, he tries to cope.

"Last Friday, chicken prices went up. I cannot raise the meal prices as how prices are being raised. I am presently thinking of presenting an increase, but because of slow business, I am holding back for at least one more month." Inexplicably, he says, his water bill has also doubled since late last year.

In the meantime, to manage his receivables, he no longer offers credit every day.

" I allow them to pay the first week they get paid and then offer them the second week on credit. For monthly paid staff, I also don't give credit every day," he said. "I use this to secure myself."

A very helpful fact, he reveals, is that he is able to get goods on credit from a local wholesale.

"Sometimes, I get functions for which to cater and they help to offset costs. I was able to offset the Azan loss because of these functions. They really helped me out. I can say that's the Lord's blessing on me."

avia.ustanny@gleanerjm.com