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.
- 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
- 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 useful information can be found at the following websites.
Company Information Walker Thompson is a trading name of Walker Thompson Ltd registered in England and Wales. Company registration number 06574838
Registered Office Empress House :: 43a Binley Road :: Coventry CV3 1HU :: T 024 7663 5522 :: F 024 7663 5518 :: E firstname.lastname@example.org