Top Tips To Beat The Crunch

Most business owners under the age of 40 have never worked through a major recession and may not fully appreciate the hardship associated with it. The Business Inflation Guide was commissioned by More Than Business and is highlighting the simple steps young entrepreneurs can take to successfully negotiate the economic downturn.

“The next 12 months are going to be very tough for many small businesses as they adjust to a slowing economy, particularly young business owners who may not be conscious of the impact a recession can have”, comments Mike Bowman, head of More Than Business. “As the turmoil in the financial markets feeds into the real economy we are going to see a lot of small businesses encounter cash flow issues. Therefore small business owners and operators need to rein in spending and start considering how the next year will roll out for their business market.”

Mr Bowman also offered a list of tips to navigate through the crunch:

1. Increase your cash flow: bill early and bill often. Set up automatic late payment reminders. Send out payments as soon as a project is completed. Track your time to ensure you are fairly compensated.

2. Reduce power bills: consider alternative heating and electricity plans. Carry out an energy audit and see how your utility provider stacks up. Turn off lights during the night.

3. Look at your phone and internet plan: can you do better? There are dozens of different phone plans available these days, some offering significant discounts and off-peak savings. Carry out an audit of your phone and internet usage and find out what plans best fits your business’ needs.

4. Review your prices: when was the last time you increased your prices? With inflation rising it’s essential to ensure that these rising costs are factored into your goods and services.

5. Review your business location: could you find a cheaper or more efficient work location? You may have been in the same location for 10 years, but does it still make economic sense to remain. Moving further out into the suburbs could save you thousands of pounds in rent. The declining state of the property market may also open up hot deals.

6. Seek free advice: the Federation of Small Businesses (FSB) recently launched a Finance Helpline for struggling small business owners. The helpline is accessible via a freephone number, which is 08000 193 633.