Friday 15 November 2013

10 tips for business survival

     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

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