Recession is coming we can help your company survive!
- Set out a simple strategy for survival. A one or two page business plan will help guide you through. If you already have a detailed business plan, dust it down, and add the new short term survival strategy to it. How does that impact upon the older plan, the business and the way you go about business?
- Follow our cost cutting guide, there are always more ways to cut costs. If you need to cut people costs, make sure that you follow correct procedures.
- Check your cashflow DAILY, we can provide a free cash flow model by return simply email firstname.lastname@example.org. Don't bounce cheques, be in control of your bank account.
- Don't stop marketing, but review all expenditure. Does old fashioned ink and paper advertising actually bring in revenues? Be honest, if it doesn't, then stop all printed advertising. Consider, Google Adwords programmes. A modest spend can bring targeted customers (Google may have brought you to this page!) If you don't know how buy "Adwords for Dummies"!
- Call all of your customers and ask how business is for them: this will benefit you in several ways. You may sell them something new or extra. You may find out that they are in deep trouble, so beware of supplying. You may learn more about the impact of the credit crunch on their business and how may that impact on your business. So you can then adjust your plans (see tip 1). Knowledge is king in difficult times.
- Review prices, can you increase your prices? Can you cut suppliers costs by paying faster or earning "settlement discounts". Can you buy larger quantities at better prices, can your business help their business survive. Talk to them! Ask accountants if you can spread payments for their fees monthly. All helps cashflow.
- Make sure that your debtor collection is spot on. I know a plumber that issues his invoices once a quarter!! Make sure you issue your invoices EVERY DAY. Make sure that you have a strong debtor collection policy, no payment after 90 days should lead to no further supplies to your customer. Yes I know its a fine line but if your customer does not pay there is no point in sending more invoices is there? See our fuller guide here https://www.companyrescue.co.uk/directors-guides-insolvency/debt-collecting
- If you use factoring only draw down one a week at most. Every time to draw down costs you money. Daily drawdowns can cost £000's over a year. So if you use your daily cashflow model you should be able to control cash such that you draw down cash Mondays, issue cheques and BACS on Tuesdays and issue new invoices every day if you can. This will save you hundreds of £'s this month.
- If you cannot pay arrears of PAYE and or VAT, you can obtain 6-12 months form HMRC to spread the payments out. if you don't know where to start use our programmes at our shop. Spend £87 to get 12 months to spread £000,'s of tax payments until 2009!
- Make sure that all of your people know that times are going to be difficult and the team must work extra hard to survive the downturn.
So there you go - Company Rescue's top ten tips to survive a recession. If you need additional help we are always here to answer questions or give guidance. Call 0800 9700 539 (free from landlines).