Credit Crunch
There has been much talk of the credit crunch and impact upon global markets, but what does this really mean for small businesses, and what simple steps can you follow to ensure the minimum pinch? According to the British Chambers of Commerce, 75% of small businesses are concerned about the economy, but few have plans in place to protect their business. If you haven't already started thinking about how you will get through the spending slump, get the ball rolling with Business Link's free business survival guide, including their top ten tips.
For more information, visit www.crunchguide.com
How could your business be affected?
1. Customers have less money to spend and are tightening their purse strings, which has a direct impact on day-to-day takings. This could mean a downturn in the sales of your core 'bread and butter' products or services, forcing you to rethink the focus of your sales activity.
2. As with banks, suppliers are being increasingly cautious about who they extend credit to. More than half of companies questioned by credit management specialist Graydon UK said they would become more picky about who they offer credit to during the remainder of 2008.
3. Other companies' financial difficulties can have a direct knock-on effect on your own, particularly if your market is business-to-business. This is bad news if they owe you money, as you risk the extra time and money involved in chasing payments.
4. If the worst happens and your debtors become insolvent, you face a lengthy process to recover your money and may even have to make the painful decision to write it off. This means that if your credit control procedures are rusty, you may be at even greater risk.
To request your free business survival guide visit www.crunchguide.com
Updated 01 August 2008
