What are the problems?
Businesses face a potentially lethal mixture of declining sales, cash flow problems and rising inflation as Britain moves towards recession. In these uncertain times itís important to stay calm and make the right decisions.
What can I do?
Some top tips:
Increase your cashflow
Bill early and bill often. Set up automatic late payment reminders. Send out payments as soon as the project is completed. Track your time to ensure you are fairly compensated
Reduce power bills
Consider alternative heating and electricity plans. Carry out an energy audit and see how your utility provider stacks up. Turn off lights during the night
Charge an upfront retainer fee to ensure you get paid
Requesting a retainer fee upfront provides a cushion while you are working on another job
Look at your phone/ internet plan. Can you do better?
There are dozens of different phone plans available these days, some offering significant discounts and off-peak savings. Carry out an audit of your phone and internet usage and find out what plans best fits your business' needs
Review your prices
When was the last time you increased your prices? With inflation rising it is essential to ensure that these rising costs are factored into your goods and services
Review your business location
Could you find a cheaper or more efficient work location? You may have been in the same location for 10 years, but does it still make economic sense to remain. Moving further out into the suburbs could save you thousands of pounds in rent. The declining state of the property market may also open up `hot deals'
Review transport costs
Is it time to trade in your old van for a more fuel efficient model? Do you need to visit clients or could you set up a phone conference or have them visit you? Use public transport where possible, rather than taking a taxi
Review marketing and advertising strategy
Could you better reach your customer base by email rather than mail drop? Does that classified ad in the local newspaper need to be in full colour?