Business & Money

Small business; big tips

Small business bore the brunt of the recession, with many having to make staff redundant or even close down altogether.

With a second-wave recession feared to be imminent, what can those with a small company do to ensure that they don’t fall into the debt trap?

1 – Consider your cash flow

Many businesses run into trouble when their clients refuse to pay before completion the task. With employees to pay and any additional services to give money to, it would be worth asking for payment upfront.

Although some may be put off, it is certainly ensuring that you can pay your bills and don’t run the risk of seriously falling behind.

Maybe offer discounts for those who do pay upfront – something which clients will also be looking for.

2 – Encourage new business

You may think that new business is out of the question if a recession is in the frame, but by highlighting your assets and giving the impression that businesses can’t do without you, you can successfully find that business will come to you.

Plan a strategic marketing ploy by identifying a unique selling point, be clear on your target audience and ensure that you advertise online and offline.

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3 – Rethink costs

Current suppliers may be able to renegotiate their prices – don’t forget, they’ll be grateful of the work too.

Try looking online for business comparison sites, which will be able to direct you to the latest deals and what you should be looking for.

4 – Beware of over compliance

Over compliance can cost you much needed time and money. Think about using third-party organisations who can help you to navigate a successful way around any regulations and laws you may encounter.

5 – Think about a loan

Your bank may be more willing to give you a decent loan than you may realise, so it’s worth going to your bank manager to have a chat.

They may be able to offer you something at lower rates and are certainly more reliable than other loans companies.