How to survive 2004
Jan 08 2004
The New Year is always a good time to sit back and take stock and to plan ahead. Smallbusiness.co.uk has produced a series of tips to help you survive 2004 – so whether you are starting up a business or looking to drive your existing business forward, consider the following tips.
Remember – cash is king If you are going through a cash shortage tell all the people who will be affected. Contact your suppliers and ask if you can renegotiate your credit terms by extending the time you have to pay them, or by paying in instalments. But make sure you can afford any re-negotiated terms – this will help to restore people’s trust in you and your business.
Review your suppliers No matter how good your suppliers are, it’s always worth checking out the competition and seeing whether you can renegotiate rates. If you have used a supplier for some time, it’s worth asking whether you can extend your credit periods.
Be conservative and realistic with your forecasts This is the basis on which you raise money, negotiate premises and order raw materials. Forecasting does require a certain amount of estimating, but make sure your figures have some grounding in fact. Try to discipline yourself by making forecasts on a monthly basis. If cash is very tight, forecasting will need to be done on a weekly or even daily basis.
Confirm your credit terms in writing A recent survey from the Better Payment Practice Group (BPPG) has shown that nearly a quarter of businesses do not confirm their credit terms in writing. Agreeing terms of credit ensures that customers know when they will be expected to pay and provides an opportunity to set out any penalties that will happen as a result of late payment. Click here for more information.
Re-evaluate your cost structure Take a look at your current infrastructure. What would you do differently if you were to start all over again? Identify areas where you can cut costs.
(8/1/2004)
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