Resilience in your business
Big week for the economic outlook of the UK this week - Confirmation on food inflation (expect to jump significantly); oil price latest; China going into CV lockdown; BoE meeting to discuss interest rates; Rishi Sunak to deliver budget on Friday - the markets will no doubt be in yo-yo mode.
Are you doing everything to mitigate the impact on your business and your people?
3 things you can do now.
1) Follow-up each and every debter. Don't let those people who owe you money off with long payment terms and 0% interest. This doesn't necessarily mean calling in the debt collection agency, but it does mean having a robust and reliable means to get the money owed to you. When you get payments in, bank them and resist the urge to spend the money on things you or your business does not need.
2) End of year audit. With the closing of one fiscal year and the starting of another, how are you assessing the expenditure and profitability of your business or department? Headline P&L scanning isn't enough; you need to look further at those costs and determine which can be reduced, which are absolutely necessary and which are not going to be carried forward to the next financial year. What is your starting point for the year ahead?
3) Don't stop the good stuff. Your new business activities, output, marketing etc, should all be firing on all cylinders. Where you have the resource to keep it going, you should. Markets change all the time and whilst some see it as a time to ease off, others will capitalise on this opportunity to grow their market share. The expertise and ability of your people and business will come to the fore in times of uncertainty - where there is chaos, there is opportunity - let customers and clients know you are there, willing and able to continue to do business with. They will remember this when things get a little more settled.
Don't let the uncertainty and headlines cower you into shying away from doing what is right for your and your business. There is no doubt things are going to get tougher as the year progresses; if you want to thrive, you need to act now.