We have all seen the impact of the global credit squeeze and media frenzy on trading conditions with the major constriction on the equity markets and banks. We understand our clients’ needs and have a few suggestions to help you through the downturn:-
Communicate with your staff. Your staff are your most valuable asset and the more informed they are, the better the morale. Trading rumours have a devastating impact on staff and your business, so be open. Staff can be a source of new business. Institute an incentive scheme to encourage them to bring in more business but remember to make it worthwhile for your staff, 60% of something is better than 100% of nothing.
- Watch your stock levels. Buy in raw materials or goods when funds are available to carry you through quieter periods.
- Communicate with your suppliers. It is in the best interest of your suppliers to negotiate differing terms, as whilst you are in business, they remain in business. HAGGLE.
- If you have existing suppliers providing you a credit line, don’t stress the relationship. A credit line is a valuable tool for cash flow. The last thing you want is to have to pay cash up front.
- Try not to cut back too much on advertising. You need to make sure your name is known to a wider market.
- Restrict overtime or only allow overtime as time off in lieu.
- Watch your staffing levels. It’s best to have busy staff rather than have insufficient work to occupy their time.
- If you do need to recruit, then think about more mature staff as you may be able to negotiate more flexible working conditions. Mature staff may prefer to work part-time to fit in with their lifestyle.
Talk to us – Pinnacle Book-Keeping professionals can advise on tax matters. Clients with exposure to UK & Isle of Man tax have a particular interest in refreshed tax advice.
The economy is a cyclical system and businesses should always have recession planning even in good years.
Pinnacle Book-Keeping professionals can help. Your business is our business and we will be more than happy to help you with advice and services throughout the year and not just at audit/accounts preparation time.
Whilst we cannot guarantee that by following some of these tips your business will survive, a proactive approach may help you.