Business Link - 10 steps for Surviving a Recession - Business Support

	TEN STEPS to Recession SURVIVAL
In response to suggestions that the UK is already in a recession, Business Link has issued its top ten steps to help local businesses prepare to survive the economic slowdown. Following its announcement of a free business ‘health check’, the Government funded support organisation has reported that enquiries received from trading businesses into its Information Centre in October are up 100% on the same point last year. Also on the increase are requests for information on redundancy and liquidation, with 10% of callers seeking information on these areas compared to a negligible number in previous months. Pat Smith, chief executive of Business Link in the East of England said: “On the basis that we are seeing an increase in customers coming to us who are already feeling the pinch, there will be many more out there who are either trying to weather the storm alone or who do not realise that by taking action now, they could avoid problems further down the line. “These steps are really just a starting point for anyone who is worried about the future of their business. The next stage is our ‘health check’, which takes stock of where a business is currently and looks at what needs to be done to move ahead. We know that businesses who take advice from Business Link have better survival rates, so our message is simple: call us now on 08457 17 16 15.” Ten point plan for recession survival 1. Mind your cashflow Understand exactly what your finances are telling you. Issue invoices promptly and chase up debtors; don’t buy more stock than you need; negotiate longer credit terms with suppliers; shorter ones for customers; fill up gaps in your forward order book; and keep in touch with your bank. 2. Cut your costs Look for savings in every part of your business. Making your business greener isn’t just about saving the planet, it’s also about saving you money. Do you turn equipment off at night? Is every business journey necessary? Are you taking full advantage of your tax allowances? 3. Credit check new customers It may take only one major customer to go bust to jeopardise your business. Protect yourself by conducting rigorous credit checks on new customers and agreeing clear credit terms up front. 4. Focus on retaining customers When finances are uncertain, consumers cut their discretionary spending, so do all you can to keep your customers coming through your doors. Loyalty schemes, small discounts and regular communications are just three ways of letting your customers know you value them. 5. Provide outstanding customer service Consumers appreciate businesses that give them more for their money, especially when times are tough. Efficient service, fast delivery, flexible payment terms, and so on, can persuade people to spend with you rather than a competitor. 6. Increase your marketing When competing for a smaller pot of money, it becomes more important than ever to tell people why they should come to you. You don’t have to break the bank, but be sure to shout about your business. 7. Concentrate on products and services that sell Don’t put your efforts into trying to sell things that are untried or that few people will buy; stick to profitable favourites. Don’t be tempted to slash prices either – if demand for your offer is not price sensitive, you will be giving your profits away. 8. Train your staff Your staff are one of your greatest assets and could be the key to retaining customers and keeping your business running. Training is important to their personal development and the productivity of your business, so don’t be tempted to scrap your training plan. 9. Streamline your operation Consider moving to smaller premises, or subletting your existing space. Sell off excess equipment and look at staffing – are your people concentrated in the right areas? Will flexible working be more cost efficient? If considering redundancies, remember that it’s bad for morale and replacements may be hard to find when business picks up. 10. Sell online An online sales or marketing channel will expose you to a larger marketplace for minimal cost. Plan and resource online selling properly, including providing payment security, attracting visitors and meeting orders swiftly. For further information visit www.businesslink.gov.uk/east/healthcheck ABOUT BUSINESS LINK Business Link in the East of England provides information, practical advice and support to help people to start, run or grow their business Our clients fall in to two main categories: - Those running or working in established small and medium sized businesses - Those who want to start their own business Both clients groups can access independent, impartial and, in most instances, free help and support from Business Link in the form of: - Free one-to-one help from an experienced business adviser (for established businesses only) - Workshops and briefings on a range of business subjects such as business planning, sales and marketing, legislation, developing people - Telephone and online support through our Information and intelligence centre Business Link in the East of England works with businesses and entrepreneurs in the 6 counties in the East of England: Suffolk, Norfolk, Essex, Bedfordshire, Cambridgeshire and Hertfordshire Business Link is a government initiative to promote enterprise, funded in the East of England by the East of England Development Agency Business Link understands your problems, challenges and goals and can help your business grow and become more profitable. Contact us on 08457 17 16 15 or visit www.businesslink.gov.uk/east Date of Issue: 04 November 2008 † Home

In response to suggestions that the UK is already in a recession, Business Link has issued its top ten steps to help local businesses prepare to survive the economic slowdown.

Following its announcement of a free business ‘health check’, the Government funded support organisation has reported that enquiries received from trading businesses into its Information Centre in October are up 100% on the same point last year. Also on the increase are requests for information on redundancy and liquidation, with 10% of callers seeking information on these areas compared to a negligible number in previous months.

Pat Smith, chief executive of Business Link in the East of England said:

“On the basis that we are seeing an increase in customers coming to us who are already feeling the pinch, there will be many more out there who are either trying to weather the storm alone or who do not realise that by taking action now, they could avoid problems further down the line.

“These steps are really just a starting point for anyone who is worried about the future of their business. The next stage is our ‘health check’, which takes stock of where a business is currently and looks at what needs to be done to move ahead. We know that businesses who take advice from Business Link have better survival rates, so our message is simple: call us now on 08457 17 16 15.”

Ten point plan for recession survival

1. Mind your cashflow
Understand exactly what your finances are telling you. Issue invoices promptly and chase up debtors; don’t buy more stock than you need; negotiate longer credit terms with suppliers; shorter ones for customers; fill up gaps in your forward order book; and keep in touch with your bank.

2. Cut your costs
Look for savings in every part of your business. Making your business greener isn’t just about saving the planet, it’s also about saving you money. Do you turn equipment off at night? Is every business journey necessary? Are you taking full advantage of your tax allowances?

3. Credit check new customers
It may take only one major customer to go bust to jeopardise your business. Protect yourself by conducting rigorous credit checks on new customers and agreeing clear credit terms up front.

4. Focus on retaining customers
When finances are uncertain, consumers cut their discretionary spending, so do all you can to keep your customers coming through your doors. Loyalty schemes, small discounts and regular communications are just three ways of letting your customers know you value them.

5. Provide outstanding customer service
Consumers appreciate businesses that give them more for their money, especially when times are tough. Efficient service, fast delivery, flexible payment terms, and so on, can persuade people to spend with you rather than a competitor.

6. Increase your marketing
When competing for a smaller pot of money, it becomes more important than ever to tell people why they should come to you. You don’t have to break the bank, but be sure to shout about your business.

7. Concentrate on products and services that sell
Don’t put your efforts into trying to sell things that are untried or that few people will buy; stick to profitable favourites. Don’t be tempted to slash prices either – if demand for your offer is not price sensitive, you will be giving your profits away.

8. Train your staff
Your staff are one of your greatest assets and could be the key to retaining customers and keeping your business running. Training is important to their personal development and the productivity of your business, so don’t be tempted to scrap your training plan.

9. Streamline your operation
Consider moving to smaller premises, or subletting your existing space. Sell off excess equipment and look at staffing – are your people concentrated in the right areas? Will flexible working be more cost efficient? If considering redundancies, remember that it’s bad for morale and replacements may be hard to find when business picks up.

10. Sell online
An online sales or marketing channel will expose you to a larger marketplace for minimal cost. Plan and resource online selling properly, including providing payment security, attracting visitors and meeting orders swiftly.

For further information visit www.businesslink.gov.uk/east/healthcheck