The business world is about to get even tougher. Everyone is talking about it. The coalition government has announced where their levels of support will drop. Public sector building and maintenance projects have been abandoned. Responsibility for managing public services with less devolves down.
Contracts will be terminated. Less work will be done. Fewer materials will be needed. Fewer goods will be purchased and distributed. Competition will get fiercer. Not many businesses will be unaffected.
Being Prepared
Now is the time for an in-depth review of your business plans and cashflow forecasts. Why not meet with your bookkeepers and office managers for a brainstorming session on potential problem areas and where costs might be reduced? You could find it well worth the cost of the time and effort involved.
Consider your customers and their survival chances. Your own could depend on theirs. Will they need to reduce their orders? Will they be able to pay your invoices? Do you need to amend your terms or their credit status in your company?
Will they test the market to see whether other suppliers are cheaper? Are your prices going to be driven down in order to compete?
Back Office Help to Cope
Keeping your financial records up to date is going to be even more crucial. If you outsource this aspect, make sure your outsourced bookkeepers understand how important it is for them to flag anything unusual and look at the implications of the figures they are processing. Then they can warn you if they see problems looming.
Let them know that you are open to their suggestions. Because they have multiple clients, they will have experienced many problems that could be similar to yours, and seen how they were overcome. That experience could be invaluable to you.
