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Managing your way to Recovery

Deborah Wyatt, Partnership Director for Business Link South East provides some top tips . . .

The recession is ‘officially’ over as the economy records growth.  Business confidence is also reported to be growing, but there is still a long way to go for recovery.  Now is the time to ensure your business is ready and can manage the expected upcoming growth. 

Finance - Ensure your cash is flowing

• Your overdraft – how long is it for, what are the interest rate and charges?  Evaluate if this is the best way to finance your cash flow. Banks will look to cut overdrafts where they can.
• Don’t let other businesses put your cash flow in jeopardy. Watch out for unusual buying patterns as they may be having problems with suppliers elsewhere.
• Reduce your customer payment terms to 10 days.  
• Margins - focus on profit not just your turnover
• Review your energy bills and look to switch suppliers to save money.
• Highlight where savings can be made with your suppliers

Planning – is your Business Plan fit for purpose?

• Focus on what you want to achieve in the next 12 months.
• Contact Business Link to arrange a FREE Business Review
• Keep an eye on invitations to tender. The public sector and, increasingly the private sector, demand companies demonstrate commitment to quality, equality, health and safety and the environment, so prepare policies in these areas prior to a bid.
• Set measurable goals for the coming month

Customers and markets

Having an organised marketing plan will help focus your business into recovery and growth

• Communicate, Communicate, Communicate to your existing and lapsed customers
• Define your unique selling point - communicate key benefits and features.
• Tell your existing customers about new products and services.
• Cost effective marketing –In tough times, it’s tempting to cut your marketing activity, however, it’s proven that those who invest in marketing during hard times emerge the strongest when good times return, so use your creativity to implement low cost marketing techniques.
• Your online profile – ensure your website is working for you and its easy for your customers to do business with you.
• Upload new content regularly, give customers a reason to return to your site
• Media coverage – ensure your local media contacts are aware of your successes
• Branding - Your brand creates an identity and personality for your business. Be consistent and ensure your key message and contact information is on all communications.
• Network - Attend events, seminars and trade shows. Take business cards and make sure you follow up useful contacts with an email, letter or phone call and add them to your database.

People and skills

Economic instability can affect employee morale. Effective management is essential to promote a positive outlook and steer a business through difficult times.

• Ask employees for their ideas on cost-cutting in their department
• Praise employees for a task well done
• Contact Train to Gain to see how you can develop your staff and increase confidence.  Companies that don’t train staff are 2.5 times more likely to fail

Finally, be ecologically-friendly. This can strengthen your brand and credentials as more and more customers want to deal with businesses that are environmentally responsible.

About Business Link

• Business Link provides the information, advice and support needed to start, maintain and to grow a business.
• Business Link’s information and advice services are available through the website www.businesslink.gov.uk
• Business Link is a regional network of highly skilled and qualified advisers and businesslink.gov.uk is the official website for business.
• Business Link helps people succeed in business.

Business Link is the government funded national business information, advice and support service - www.businesslink.gov.uk