As figures have shown, the UK economy is still struggling to come up with any real growth and will continue to struggle throughout the near future. Much of the business sector is still worried about prospects for their companies, including many SMEs, who themselves are facing big challenges with limited access to finance, tight cash flow and unwilling consumer activities. So, what are a few survival tips that could help keep your business afloat?
Good money management
Any good business owner will know just how important this is. Effective money management needs to be an ongoing process, not just carried out at the end of the month. Make sure your credit control system is efficient and you’re not wasting time with incorrect invoicing – getting your procedures right will make sure you can limit payment times.
Keeping your employees informed of changes and issues that your business is experiencing will help them to understand when the decisions you have to make start to affect their day to day – for example when you need to cut hours, reduce overtime or even cut short contracts. Keeping staff in the loop will make sure they feel valued and will help to build loyalty.
If you think your business needs funding then the bank might be your first call. However, like many small businesses, this could be a difficult place to succeed as so many SMEs are being turned down for loans and overdrafts. Instead of leaving it at that, be sure to scope out your other options – alternative finance measures such as invoice finance can provide an injection of cash flow when your business needs it most, as well as offering support for your credit collection through a factoring service.
If your business needs a boost to survive then be sure to look at all your options for finance – help could be there, you just need to find it.