Riding the economic storm
December 2008
Riding the economic storm
It is a brave person who today is predicting economic recovery round the corner, but it is also a short-sighted one who is sinking into despair.
Today's challenging conditions understandably command concern from small-business owner-managers, but they also present real opportunities for all small businesses that should be firmly grasped. Before considering them though, it is essential to ensure your business is in the best possible condition to weather the difficult times ahead. Particular sectors are not going to disappear because of the economy, but badly managed businesses will.
Be thorough in looking for where efficiency can be improved in your business. Update your business plan and review your budgets. Consider your contingency plans and how prepared you are to put them into action. Now might also be a good time to do a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis.
Good cash flow is key to survival. Invoice promptly and send out reminders when payments are due. Always chase up late payments and don't be afraid to make use of the debt-collection mechanisms available to small businesses.
A reluctance to ask for money that is owed is a common and understandable weakness among small businesses, but it's professional to say 'pay up' when payment terms are up.
We know that even in the worst times the number of casualties is very modest as a proportion of the total number of businesses. Most businesses will come out of this in a reasonable state. There will be survivors.
The above is an extract from www.businessmatters.hsbc.co.uk
Make sure you are using your accounting software to its full potential as it can be a powerful asset in helping you through the difficult times ahead.
- How well do you control your debtors, creditors and stock?
- Do you check your margins by customer or product?
If you wish to know more or are considering some further training, please contact John Surridge 01656 725800
Return to category: Newsletter: Brilliant News - December 2008