Small companies spend a large chunk of time on customer acquisition and supplier management, but it can be tricky to determine if those external contacts will be a boon to business or a drag on the accounting department.
Minneapolis-based
Argos Risk intends to turn the process into a streamlined, simple strategy that can benefit any company. The firm provides a monthly subscription service that allows enterprises to monitor the ongoing financial health of customers, suppliers, and even competitors.
The tactic lets Argos clients manage risk, and also gives them a tool to determine which customers deserve more credit or more sales efforts directed their way. The software-as-service was designed for small and medium-sized businesses (SMBs) in particular, says co-founder Steven Foster, because companies of that size often lack the resources to do extensive risk management.
The Argos "stoplight system" gives users a quick indication of potential credit problems, and an alert system kicks in when a customer or supplier starts heading from yellow to red. Foster says, "We've had very good feedback about the system; people really appreciate how helpful it can be when making decisions about their customers or suppliers."
Recently, the company introduced another risk-management tool, but this time it's for the SMBs themselves. Argos Risk Defender monitors a company's credit and issues an alert if problems are cropping up. Company president Lori Frank compares it to LifeLock, the identity-theft prevention tool for individuals.
"This is an era when identity theft is the fastest growing crime, and businesses aren't immune--far from it," she says. "We're helping to address the problem, and to help companies that may have been compromised."
The company is finding strong traction for its products, and expects strong growth in the year ahead, including hiring in some key positions. "We take a field that's complicated and make it easy for our customers," says Frank. "When you do that, you can always find growth."
Sources: Steven Foster and Lori Frank, Argos Risk
Writer: Elizabeth Millard