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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.

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