Small businesses are particularly vulnerable in tough economic times.

When sales are slow, there are still overheads and salaries that need to be sorted. Pre-planning and being proactive can help you weather tighter economic periods and allow you to continue to thrive.

Make sure you have a clear picture of your payroll, and any other planned expenses that will need to be accounted for.

If there’s even a possibility that there could be a shortfall, it’s essential to meet this head-on. Whether this means talking to your supplier or creditors to figure out an arrangement, or compromising on other business outgoings, you must make a plan to ensure that the business, or your staff, won’t suffer.

Minimise the Stress of Cash Flow

• Invoice early: Send any invoices that you can, and in advance if possible. Consider whether you have any regular clients or customers that you could offer a retainer or similar deal to if they book services or make a purchase from you in advance.
• Chase payment: Use this opportunity to follow up on any outstanding payments. Strong communication and relationships matter — talk to clients and actively chase invoices.
• Talk to suppliers: A little honesty can go a long way. They may be able to extend a line of credit for your payments. In most cases, a good supplier would rather offer flexibility to maintain an ongoing business relationship.
• Review inventory: Can you find a cheaper supplier locally to avoid shipping costs, or discuss alternative products that allow you to reduce expenses?
• Review your costs: Business costs can creep up, so it’s a good idea to regularly review your expenses. Check all regular payments, subscriptions, and upcoming costs. There may be travel, functions, or purchases where you can take a more cost-effective approach.
• Talk to the bank or tax department: If cash flow is tight, start these conversations early so you have the right support in place.

We can help you implement strategies to protect your business for the long term and alleviate cash flow worries.