insights

Tips for business survival

by | Aug 18, 2022 | Understand your business

In this challenging environment it easily feels as though we don’t have the skills and capacity to cope with a business that has served us well in the past.  There are new local and international competitors in the market, there is a shortage of skills and different work ethics, the influence of the political environment, pressure internationally on logistical operations, increased cost of doing business, remote working and more.

If you are reading this, then it is likely that your business has not drowned and that you are going to make sure it does not.

Practical tips to consider:

 – the biggest return on efforts is always increasing sales as the margin it contributes is more than savings from cost-cutting

 – consider new areas to service customers whilst leveraging of the existing infrastructure

 –  is there another business in the chain that could compliment your goods and services with whom you can combine efforts to grow customers or get cost synergies

 – have a cash buffer to avoid the stress of every tax deadline becoming nerve wrecking

 – be on top of all financial commitments

 – be aware of the risk of customers paying late or not paying at all

 – be vigilant on all costs

 – keep your credit record clean in case you need access to funding

 – convert fix cost to variable cost where possible

 – review the value of each and every cost and asset in the business, including suppliers, contractors and employees

 – be insured for those things that could bring your business down

 – extended credit with vendors might cost less than other finance, but be sensitive of the impact of the supplier’s business and your reputation

 – be in touch with what is happening in the market and specifically in the industry you operate

 – have specific short-term goals and celebrate the success of them with your team

 – be empathetic to the emotional state of employees due to rising cost of living

 – ask a consultant if you need help

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