In tough economic times often business emphasis is on survival rather than growing the business. In this article we are offering businesses our 10 top tips for business survival:
1. Cash flow is king - having a healthy cash flow and managing it competently are the life blood of any fit business
2. Avoid
under-pricing - rebuilding margins is as important to recovery as rebuilding
sales. Getting prices right in the first instance will ensure that you are not in a situation where you have to explain to your customers why you are putting up your prices
3. Invest
wisely in people and systems and ensure you receive an adequate return on the
investment
4. Cost
control and cost reductions should be maintained during a recession and
recovery
5. Establish
a long-term marketing strategy backed by a consistent marketing budget
6. Beware
of over-trading – don’t take on more orders without being sure of the working
capital to process them
7. Growth
should be driven by judicious planning rather just the enthusiasm to do more
business
8. Capitalising
growth from a company’s own resource can drain it of cash – consider funding against existing sales through factoring or some other form of finance
9. Be
aware of the need for capital sufficiency: reduce your debt burden at both
ends, what you owe as well as what you are owed
10.Credit check your potential customers to avoid being hit by bad debt - set a credit limit for all customers and never exceed it
If you would like more information about how to maximise your business whilst minimising your risk, call Neil Todd at Blue Box on 084 3289 3288