With the current financial crisis set to continue, small businesses must consider how to survive a potentially long-lasting recession. Here are some top tips to successfully steer a business through the recession:
Maintain healthy cash flow – By tracking what money is coming in and out, it is possible to manage cash to unlock capital and transform the bottom line in uncertain times. For more information, see the BERR guides on cash management.
Explore funding options – Looking for alternative forms of finance in an environment in which banks are tightening their credit criteria is definitely worth considering. ByteStart summarises the different borrowing options for small businesses.
Track finances – The best thing to do during an economic downturn is keep an eye on the business’ money using some simple financial management software. Many basic accounting packages including QuickBooks SimpleStart can now be downloaded for free online.
Managing debtors – In addition to a healthy cash flow, credit control and managing debtors is essential to any business. The Institute of Credit Management (ICM) has created an online portal designed to help businesses get paid on time.
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