In the last few couple of weeks I have been working with clients and helping them to make sense of the scare stories in the UK press about the impact of the sub-prime crisis and what some pundits are saying about the prospects for economy.
I have just issued an article to a number of newspapers and business publications and the media. If you would like a copy of the full article, click here. Here is a taster of what I have written.
Of course I have already said that I don’t believe what some panicking journalists are implying ie crashes, recession etc.
But you should as a sensible business owner, take account of what’s happening and plan accordingly.
Here are the actions that you should take now!
Firstly plan your sales and growth realistically
Do a thorough review of your costs and overheads, (not a quick ‘back of the cigarette packet’ estimate).
Save costs and overheads but not at the cost of business, for example in a downturn a lot of businesses first reaction is to slash marketing dramatically but that can be counterproductive.
Manage your finances using good Cashflow and Profit & Loss forecasts and credit management records.
This business maxim is still true today, ‘Turnover is vanity, Profit is sanity, and Cash is reality’. Think Profit and Cash not turnover.
Do you have a big overdraft? Reduce this by converting the proportion of it that is constant to a commercial loan, it can save lots of money.
Are you reliant on one or two big customers? If so, could you tie them into a longer term contract or if you are a service business, into a maintenance contract.
What are you spending money on, are you getting the best deal?
Get three quotes for everything, ask for fixed price quotes from your service suppliers that includes your accountant etc.
For more information about how simple techniques could help your business e-mail me today!
Alan Briggs
Dynamic Business Strategies Ltd
Tel: 07917 446068
E-Mail: info@dynamicbusinessstrategies.co.uk
Website: www.dynamicbusinessstrategies.co.uk
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