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AisaDirect Ltd, an Independent Financial Adviser authorised and regulated by the Financial Services Authority in the UK only.
1/2 Fordbrook Business Centre, PEWSEY, Wiltshire, SN9 5NU Registered in England: 3621676
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Any information or advice on this site does not constitute a personal recommendation. If you have any doubts as to whether a product or service is suitable for you, please seek independent advice.
Business Advice
These issues are all interlinked and fundamental to business success.
Managing Money
1. Set a financial plan and then follow it!
2. Do you really need to borrow? Check your best rates available and do not get locked in with false loyalty or because you are scared to make a change.
3. Talk with your accountant and advisers about options.
4. Consider switching accounts to find a better deal with a new bank. Or maybe your current bank give you a special deal as a loyal customer?
5. Review your charges and actually factor those in.
Cashflow
6. Cut your outgoings be reviewing direct debit arrangements and eliminating un-necessary ones. They always build up over time so do it regularly.
7. Clear credit card debt. It seems obvious, but pay off balances first that have highest charges.
8. Review which debts are worse and make a plan to repay these first, and consider transfers to lower rates if it will take you a long time to pay off.
9. Monitor cash flow. Ensure management accounts are up to date, and that all key financial reconciliations are done, reviewed, and outstanding items cleared.
10. Tighten up credit control & cash collection procedures. Invoices should be sent promptly. Make sure paperwork is in order, from the correct delivery address to the exact person in the accounts department who handles invoices. In big organisations there may be several signatures needed so this will ensure speedy resolution.
11. Look carefully at your forward order book, and the timing of future orders.
12. Allow for bad debtors and monitor customers ability to pay. If a customer misses one payment, no matter how good they have been in the past, do not proceed with future orders until you know they have paid – so many business make that mistake of continuing to provide orders for supposedly good customers who are no longer paying! Encourage staff and other employees to be the “the eyes and ears” of a business. They may notice that stock is remaining on shelves longer, which can be the first sign of future trouble.
13. Pay attention to investments and major capital expenditure, or employ an adviser.
14. For those businesses which import/export, consider foreign exchange hedging.
15. Monitor cash flow at all times over the coming 3-6 months so that you can react quickly, reduce costs, increase margins, and discuss with your creditors early.
Other
16. Look critically at staff requirements/recruiting strategy. Instead of new staff, consider paying for paid overtime.
17. Consider temporary against full time recruitment.
18. Consider incentivising schemes and bonus awards. Ensure such schemes relate as much to profitability and cash generation as much as to growth.
19. Consider liquidity? Without a good plan, and with lowering cash available then beware the real concern of insolvency.
20. Are risk mitigation measures still valid? Are mitigation owners being proactive in their responsibilities?
RELATED INTERNET LINKS
- You?re never too old to go it on your own
- Small Business Digest
- 10 tips to starting a business
- Business plan template
- Manage your cash flow template
- How to write a business plan
- How to pitch for success
- www.paymentleague.com