Small business owners are under intense and compounding pressure. I know- I am one!
Here is the checklist of things to do if you feel the pressure – mostly just watch your back stuff that should be second nature, but at times like this sometimes gets forgotten
- Have you got liquidity? Have you got your own little secret pool of liquidity? You should,
- Check your bank position. Are you exposed to an overdraft review coming up? Relationship banking won’t work, having a fallback position will, I will be publishing a note on new forms of investment capital from your pension scheme shortly.
- Watch other trade credit arrangements, factoring could be “crunched” so the only people they can squeeze are you.
- Your debtors are going to push their luck with credit and some of them will fold. There is nothing you can do about this other than the age old motto, all your eggs. If you are exposed, get diversified. Also get in first, and don’t be afraid to take a deal.
- Your trade creditors are going to treat you in the way I have just described your debtors. Take advantage of the crunch, play fair, but everyone is having it tough. Do deals
- Keep your key clients close, make them know that you value them
- Have a plan and be prepared to change it. Small businesses will be the ones who will take advantage of the upswing (when it happens)
- MAKE SURE THAT YOU HAVE DIRECTORS AND OFFICERS PROTECTION. Don’t cancel it. You ust don’t know when you might need it. Ditto life and critical illness. If you have a heart attack now, you will thank me!
- Stay positive- someone is making money, even if it isn’t the taxpayer.
Group Operations Director
City Gate Group Ltd
1 Park Circus
Tel: 0141 332 4141
Fax: 0141 332 4142
Members of the City Gate Group Ltd are authorised and regulated by the FSA
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