Planning tips to negotiate the economic black hole
With many large firms wondering if they can weather the economic storm, here are some tips to help small companies remain agile enough to negotiate the economic black hole – by careful business planning.
Here are some top tips from Bibby Financial Services to help small businesses plug the economic gap:
Plan
Make sure you plan your budgets, where would you like to see your business going and, perhaps most importantly, what to do if these fall short of expectations.
It’s always a good idea to have a contingency plan, no matter how great things seem to be going, so avoid excessive spending during leaner months, even if things are on the up. And remember, a sound business model is a flexible one as you never know when you may want to try a change of tack.
Deliver good practice as standard
It shouldn’t take an economic downturn to get your business affairs in working order. Strong, consistently enforced practices will help keep your business ticking over. And a smoothly run business generates a more positive profile overall which, in turn, will impact positively on all that you do.
Understanding your business
It sounds obvious but do you really know every aspect of your business, your client base, the market(s) in which you operate, the processes you utilise and the suppliers you use? Taking a little time out to (re) familiarise yourself with all facets of your business can be worth its weight in gold, identifying core areas in which to streamline or refocus your efforts.
Get professional advice
No one person can be an expert in absolutely everything so the savvy business owner or manager will seek professional support where and when they see fit. If your cashflow is suffering due to the bleak economic climate, consider your finance options and investigate the alternatives.
Invoice financiers can release cash tied up in unpaid invoices. By chasing and collecting outstanding payment on your behalf, not to mention providing current-climate-critical bad debt protection, you can see cashflow freed up before your very eyes allowing you to focus on whats really important – driving your business forwards. You can also read our dedicated to invoice finance and factoring.
David Robertson, chief executive of Bibby Financial Services, said: “Whilst the current financial climate is a challenging one, it’s an environment where the smart, prepared business owner can still thrive. The importance of sound financial planning has never been more vital which, if done correctly, can act as a plug against the seemingly all consuming void.
“Whilst some businesses will undoubtedly succumb to increasing financial pressure, both on and all around them, small to medium sized business can avoid the wider economic stresses with rigorous planning to fortify their cashflow. It is these businesses that will ultimately excel in the inevitably less crowded market.”
Posted October 8, 2008
