While Christmas may not have lived up to expectations for many retailers and the end of the recession still feels far away, it is vital that all business owners start planning how 2010 will be a better year. According to a recent report, establishing and maintaining a healthy cash flow is one of the most important aspects of surviving the recession. Have a look at our guide on how to do it.
Assess your Overheads
From office space to staff, all overheads eat into your company’s bottom line. Therefore, it is vital you assess what they add to your business and streamline them if necessary
Charlie Sunderland, CEO of online advertising firm ‘Media ETC’ , says that before recession hit, his company adopted a laid-back policy when it came to outgoings, he comments ; “ Money was coming in, clients paid on time and therefore, we took our eye off the ball when it came to what was going in and what was going out. Then, once recession hit, our cash flow suddenly became a problem. To ensure we are never in that position again, the business now has a separate bank account for outgoings and I monitor it daily.”.’
Communicate with your suppliers
Times are tough and most businesses will be going through some kind of cash flow issue, therefore, it is important to keep the lines of communication open with your suppliers; discuss extending terms and – if necessary- re-payment plans. They will be more obliging if they know when payment will be received.
Check out tomorrows post for our next installment.