General Advice for Challenging Economic Times

Manage your costs

• 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.

Managing your cashflow

• 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.

Manage your debts

• 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.

Employment considerations

• 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.

Loans and grants

• 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 information

Further useful information can be found at the following websites.

• Business Link Website
• ACAS website