Guildford Borough Council supports Enterprise First and the work it does to provide free, impartial advice to small businesses, both start-ups and those that come back for ongoing support. In the current climate most companies will be feeling the effects of the credit crunch so here are some top tips put together by Enterprise First to help small companies minimise the impact on their business.
1. Focus on your customers
- As the economy slows, existing customers may not buy from you as frequently as before or as much, and new customers will be harder to find. Your sales turnover will come under pressure. It is easy, in times like these, to take an axe to your marketing budget but resist the temptation! It is more important than ever to continue with your promotional activities so that potential customers can easily find out about you.
- When budgets are tight, existing customers are more valuable than ever. If you think you might be guilty of taking existing customers for granted in order to concentrate on new and prospective ones, think again! Customer loyalty comes into its own when times are hard.
2. Be aware of your finances
- In this current situation, it may be that your debtors will be slower to pay, and your creditors will be pressing you for payment. Your cash flow is likely to come under pressure. Review your projections now and make sure they still hold water in today's conditions.
- Remember that the likelihood of bad debts will rise: make sure your credit references are up to date and your debtor control operation is sharp.
3. Look at your suppliers
- Your suppliers may be threatening to charge you more for their goods and services. Remember you don't always have to accept price rises. It may be worth negotiating or suggesting staged increases.
- You should look at your costs rigorously as well. It's easy for a bit of fat to creep in during the good times. However, in most businesses, with the right attitude and a red pen, you can cut a fair amount out of your cost line. Can you reduce your utility bills by switching suppliers? Are you incurring travel costs unnecessarily?
- Look at each line critically - you will probably be able to make worthwhile savings without damaging your business. If you have employees, ask them for their ideas.
4. Maintain a good relationship with your bank
- If you have got a good business and a good business plan, which recognises the risks you face and builds in sensible contingencies, the banks will look to work with you. If you find the financial situation is getting difficult, talk it through with your bank in good time.
- There is nothing worse for your credibility than ringing up in a panic for an emergency rise in your overdraft.
- If you keep the bank advised, you are likely to find them much more constructive if you need to call on their help in the future.
5. Don't face it alone - take advice
- There's nothing worse than feeling that you are handling business pressures alone. Remember that there's a huge array of business support and advice available for you to take advantage of. Key support comes from Enterprise First, part of the NFEA network of enterprise agencies - local, independent, not for profit organisations, set up to provide dedicated business support to start-up, new and growing small businesses.
Of course the nature of business is that you can never really know what is round the corner - and that is part of its fascination. There may be good times; there may be 'not so good' times. But with a bit of focus and a realistic and practical approach, there is no reason why you can't handle the current situation and come out the other side with a better-managed and stronger business.
Contact Enterprise First to find out how they can help using the details below. Clients can meet in confidence with an experienced business adviser in Guildford and other locations across Surrey.
Enterprise First
Tel: 08456 4587535
Email: info@enterprisefirst.co.uk
For more general business advice about business rates, relocation advice, or planning and licensing contact Business Advice using he details below.
Business Liaison
Economic Development
Guildford Borough Council
Millmead House
Millmead
Guildford
Surrey
GU2 4BB
Tel: 01483 444329
Email: business@guildford.gov.uk
