As we start a hopefully better New Year a lot of SME's will be looking for ways to ensure that they continue to survive. Now is the time to revisit business plans and look at strategies to help thrive in 2021.
A lot of businesses struggled with cashflow in 2020 during the various lockdown periods. Now is the time to be looking at how you can improve your cashflow moving forward.
There are numerous options available to you from offering your customers discounts for early/ontime payments, changing your terms and conditions to include automatic direct debit for recurring customers. Managing your supplier bills and getting the correct advice for your business.
Reviewing your Suppliers
Consider your products and ensure that you are obtaining the best service and price from your suppliers. Are you putting all your eggs in one basket and only relying on one or two suppliers? Is this feasible? Look at what other options may be available.
Do you have a good relationship with your customers? If your customer base has decreased look for the reasons behind this. How can you reconnect, rebuild and maintain their loyalty to your business. Maybe consider rewarding your long term customers.
Premises vs remote
We saw a lot of businesses continue to work with staff working remotely and pivoting their business to an online presence. This could be the time to consider whether your current premises are relevant or taking up the option of downsizing to smaller premises and continue to have staff working remotely. Rent savings can certainly improve your cashflow.
A lot of jobs were sadly lost last year but as everything starts to return staff are looking to see if there are better opportunities out there. It is hard and expensive to replace good staff and looking after your staff helps you to look after your business. Showing your appreciation to staff with promotions or rewards ensures that you have continuity in your business workflow as your key staff are less likely to look elsewhere.
If you have any questions or would like help with reviewing your business What is Liquidation can help you avoid the pitfalls.