MANAGING YOUR BUSINESS THROUGH TOUGH TIMES
1 Get your money in faster. If you hate chasing those outstanding invoices, then go on a course or send your staff on one so that you learn the techniques of getting paid quickly.
2 Are your accounts under control? Do you know exactly what your forthcoming cash flow looks like? And your next budget? Are you up-to-date with your regular management accounts? If you want to feel in control, you must first get control of your financial situation and sometimes, it is not as bad as you think.
3 Look closely at all your deals and contracts. Can you renegotiate the price of anything? Can you increase the price of anything? Can you lower the price of anything to attract more customers?
5 Go slow on your stock. Only order what you need and just in time. You can't afford to have surplus money tied up in stock.
6 If you are very overstocked, consider whether it might be better to cut your losses and turn some stock into cash.
7 Don’t take on permanent new staff unless they are to be in an essential selling role. Use temps and short-term contract employees for specific projects.
8 Is anyone in a key role not performing? If you have let matters drift with difficult colleagues, you may have to bite the bullet and let them go in order to restructure. Morale in a company is often improved when the weaker employees are pruned as they are letting everyone else down – and everyone in the company always knows who they are.
9 Don’t panic. Tell your staff that things are tough and that you all need to work together as a team to overcome the difficulties. Listen to any suggestions they may have. They will often think of things that you might miss. Be frank and honest and encouraging. Some companies perform better when their backs are to the wall.
10 Lead from the front. When times are tough everyone knows it and if you want to hang onto your business and keep your key staff, you have to show no fear.
