To hell in a hand-cart?
The business climate has been pretty turbulent recently, with the international Credit crisis suggesting a possible further downturn in the economy, and as the political battle-smoke clears the betting is that some changes are likely to be pretty unwelcome as we dig ourselves out of record national debt (or even try to stop it from increasing so rapidly).
WHAT DOES THIS MEAN?
Firstly, you have got to hang on to your dreams, they still exist whatever else is going on around you. Do not lose sight of what you are trying to achieve, stay focused.
Secondly, in a changing economic climate, be prepared to be flexible and ready to adapt to whatever life throws at you. Now is the time to be strong.
If you need to discuss what is important to you right now, please remember we are here and willing to listen.
TOUGH TIMES ARE AHEAD?
All the economic indicators tell us that we are looking at some tough trading times ahead. In that regard, we have prepared a ‘Tough Times Business Checklist’ which we hope you will find useful as you look at ways to keep your business successful in this evolving environment.
Please review the ideas we have presented and talk to us about how we can help you with implementation. We have seen and helped clients over the years to control their costs and maintain their revenue bases.
What is really important is that you take steps now to make sure your business is ready to face the brave new world we are now drifting into; please let us know if you need help.
No. |
Action Item |
Completed |
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1. |
Review your Budgets and set realistic and achievable targets. |
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2. |
Get rid of cannot pay/will not pay customers |
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3. |
Review debtors list and chase up overdue invoices |
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4. |
Consider offering existing debtors extended payment terms and/or discounts |
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5. |
Make sure your terms of business contain explicit payment terms |
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6. |
Assign responsibility to one individual for invoicing and collections |
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7. |
Agree extended payment terms with all suppliers in advance |
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8. |
If appropriate, review banking facilities and discuss future needs |
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9. |
Put extra effort into making sure your relationships with your better customers are solid |
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10. |
Review, possibly using a flow chart, the main processes in your business (e.g. sales processing, order fulfilment, shipping etc) and challenge the need for each step. |
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11. |
Encourage team members to suggest ways to steamline and simplify processes (e.g. sit down and brainstorm about efficiencies and cost reduction). |
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12. |
Review your list of products and services and eliminate those that are unprofitable or not core products/services. |
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13. |
Establish your key performance indicators (KPI’s) and measure them on a regular basis e.g. |
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Sales Leads generated |
Orders supplied/fulfilled |
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Cash balance |
Stock turnover |
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Debtor days |
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Gross profit |
Net profit |
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