Most of the news relating to the economy over the last eighteen months has been doom and gloom to say the least. Businesses have been continually reminded that the economy is shrinking and that forecasts for the future are bleak. The current economic downturn has been described ‘as the worst that this country has seen for over thirty years.’
The absence of a definitive solution has also exasperated the situation. The ideal solution would be for the government or an economist to produce a blue print on how to run a business during uncertain times. Alas there are no blue prints or hard and fast rules available. Many businesses are therefore left with little option but to continue operating as best they can.
As an experienced company, Accountants & Business Consultants – Holden Associates, believe that businesses need as much help and advice as is possible during the current economic climate. Working with a wide range of companies has enabled us to acquire a healthy business acumen. Providing advice and support to our clients is second nature to us. As such we would like to share some quick tips on surviving the credit crunch.
· First and foremost – Be flexible
The old adage about ‘putting all your eggs into one basket’ certainly rings true when looking at banking and finance. Arranging your finances with more than one bank or financial institution will certainly give your business more options.
There is absolutely no reason why your business banking, personal current account, savings account or loans need to be with one bank. Spreading your business finances over many institutions will provide flexibility to access the best products on offer, maximise borrowing and improve your financial potential.
There may a credit crunch, but do remember that every business needs new customers – shop around.
· Do something different – Manage costs
In an ideal scenario all your suppliers are delivering well and you have a good turnover. Would there be any reason to review your outgoing costs? Under most circumstances the answer would be no – if there is nothing wrong why change anything.
Reviewing costs whilst your business is working well is an excellent time to look at how savings can be made and services improved. Reviewing products, suppliers and services can save your business money.
Carrying out a review may also provide your incumbent suppliers with an opportunity to offer your business improved services.
· Finally do not bury your head in the sand – Ask for help
Asking for professional help and advice throughout the year can yield untold benefits. Receiving advice in crisis or at the end of a financial year is not a good business strategy. The sooner you involve an accountant, a business advisor or a financial advisor the better placed you will be to take action when necessary.
Running a business in isolation without professional advice is never a good idea. Many businesses do not seek external help or assistance until disaster hits them.
If you want your business to survive the credit crunch then you will need to be proactive and innovative. Coping with change and realigning your business can be the first steps in stimulating business growth. Companies that are more likely to succeed are those that invested their business.
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