Think carefully about any new purchases. Are there other options available that would serve the same purpose?
Could costs be reduced by changing the way you do things? For instance, travel costs can be reduced by telephone or video conferencing.
Compare the prices of services like telephone and broadband.
Consider moving to smaller premises to reduce rent and rates payments.
Avoid signing up to long-term contracts.
Create a realistic forecast of future cashflow.
It is also worth running several scenarios to see how the business would stand in the event of certain circumstances, i.e. loss of customers, delays in receipt of payment.
Credit checking prospective customers can flag up warning signals. For example, changes in ownership, address or scope of activity should prompt a closer look at their credit rating. It is worth keeping tabs even on longstanding customers as circumstances can change.
Keep an eye out for any change in customers payment histories. If a previously excellent paying customer starts taking longer to pay, it could be the first sign that they are suffering cashflow problems.
Provide details of your terms and conditions at every point of contact.
Chase your debts regularly.
Keep accounts up to date. Good record keeping is essential for credit management.
Investing in skills and training can increase the competitiveness of your business and improve the performance of your staff.
Consider whether existing staff can fill any roles where you are thinking about recruiting.
Ensure that your recruitment is effective, take the time to find the right person for the job.
Check that you are getting the best deal for your business from your bank.
Thoroughly investigate the options before changing bank accounts.
Check the fine print for hidden charges and interest rates.
Further useful information can be found at the following websites.