Less than eight weeks ago, newspaper headlines warned that the UK was facing the highest risk of recession since the financial crisis of 2008. Businesses went into blind panic Brexit scaremongering was heightened (again).
Flash forward to this month and the press are painting quite a different picture. Throughout July, businesses across the board experienced an unexpected burst of growth which seemed to dilute the risk of recession somewhat.
Though this suggests security for now, it’s always wise for small businesses to be prepared, especially in our current fragile political climate. Here are a few top tips for damage control, to protect your small business as much as possible.
Get an accountant on board
OK, so we’re obviously going to support accountancy services. But in our line of work we’ve seen, over and over, that it’s always better to ensure preventative measures are in place before something goes wrong. Working consistently a qualified accountant consistently will help your business maintain a good level of financial health, ready to face whatever is thrown at it.
Evaluate the products and services you offer
Any financial crisis or economic struggle automatically means that an already competitive marketplace gets even more cutthroat. With that in mind, revisit the products and services which you offer. It might be that you need to expand your offering, refine it, or change some of the operational processes. Look at what your competitors are doing, and consider what you can do to beat them to it.
Cut down on any unnecessary costs
If there is a potential recession on the horizon, there’s really no better time to evaluate your spending. Doing so will allow you to identify any places where money could be saved and put into reserve, be it through employment, utilities, overheads or property.
Take measures to improve income flow
What we mean by this is making simple adjustments to get money in your account quicker to make your cash flow more efficient. Making invoice payment terms shorter and implementing deposits are both effective ways of doing this. If this is something you decide to introduce to existing customers, be sure to handle the transition with sensitivity.
Evaluate your marketing strategy
Generating more business and engaging new audiences is always the aim of the game but it’s particularly crucial in unsettled economic times. Revisit your marketing tactics to see if there is anyway your strategy can be strengthened to bolster your position in a competitive marketplace.
Hold off on any big or expensive decisions
Threat of a recession is certainly not the time to be giving the green light on any major decisions or money-spending. Avoid starting any large projects like an office redesign or employing new members of staff.
Every business wants to drive growth and development, but in times of economic uncertainty, there’s more pressure to make considered, well-informed decisions. Pandle’s financial reporting functions can give businesses the real-time oversight they need to do just that! Learn more about how we do this.
