Article by Laura Walshe of The Business Debt Advisor
It has been broadly reported that company insolvencies in the UK increased in the first quarter of 2019 with some insolvency processes at their highest level in five years.
The team at The Business Debt Advisor has reflected on why businesses fail and what can be done to protect business owners.
Having a comprehensive business plan is essential, but dividing the plan into smaller steps can make the process less daunting to tackle.
Our Business Survival Checklist sets out a number of simple steps that business owners can follow in order to grow a new business or strengthen an existing one.
What’s in our Business Survival Checklist?
Some of the key points are highlighted below:
1. Review Budgets and Projections
Prepare financial projections which should include what you expect to make in terms of gross sales, and budgets allocated to your operating costs (such as your direct costs, insurance, marketing, payroll, premises and professional costs).
2. Target Audience
Your target audience is the demographic most likely to be interested in your product or service. For your target audience to “buy into” your product or service they need to relate to the content of your message, so make sure your marketing reflects this.
3. Deal with Overdue Invoices
Unpaid invoices will have a negative effect on any business. If payment is overdue from a new customer consider whether you would trade with them again? If a long-standing customer is struggling then be clear on what your position is.
4. Review Funding
There are many ways to get business funding, ranging from start-up loans, traditional bank loans, factoring, peer-to-peer lending or venture capital. But it is likely these options will require commitment from you in the form of a personal guarantee.
5. Increase Productivity
Have processes in place that enable you to get the most from your existing resources (i.e. staff). Communicate your productivity targets, how these are measured, and set clear goals.
6. Review Efficiency
On a regular basis, review whether or not there are more efficient ways to operate your business. It could be appropriate to automate or outsource tasks, or simply discourage any processes which do not provide value for time and money.
Download Your Free Checklist
To download your free copy of our full copy of our Business Survival Checklist, click here.
For more useful information on how to drive profitability within your business please get in touch, or visit our website.
If have concerns regarding the stability of your business please fill out our Contact Form and we will be in touch.
Alternatively, call our FREE ADVICE LINE on 0800 781 0990 or chat to us online.
Our team has extensive experience in dealing with businesses across all sectors and can arrange an initial consultation at no cost, usually on the same day.