Across all regions of the UK insufficient cash reserves is a clear issue for many smaller businesses and the government has now launched the Recovery Loan Scheme.
Cash flow and business planning in these uncertain times may appear difficult but there are some practical steps you can take to minimise potential disruption to your business:
- Review your Budgets and set realistic and achievable targets for the remainder of 2021
- Get your employees involved in a discussion of likely trading conditions and get their input on reducing costs and maintaining revenues
- Review and flow chart the main processes in your business (e.g. Sales processing, order fulfilment, shipping etc.) and challenge the need for each step
- Put extra effort into making sure your relationships with your customers are solid
- Review your list of products and services and eliminate those that are unprofitable or not core products/services
- Review efficiency of business processes and consider alternatives such as outsourcing certain activities locally or overseas
- Agree extended payment terms with all suppliers in advance
- Pull everyone together and explain the business strategy and get their buy-in
