In the face of uncertainty, small business owners may feel like they're navigating through uncharted territory. We'll be exploring some simple yet effective strategies to help your small business adapt, evolve, and ultimately flourish during these challenging times.
Here’s a checklist of actions you can take.
Reduce Reliance on External Finance
We all know that relying on external finance can be a risky move for businesses. So what can we do to reduce our reliance on external finance?
Prepare realistic cash flow projections.
Reduce unnecessary financial commitments.
Review and restructure bank loans (reduce monthly instalments and neg. for longer repayment terms).
Follow up on late and outstanding payments from clients.
Make use of suppliers’ payment credit terms, but do not exceed the allowed term.
Give priority to marketing and sales activities.
Focus on high-turnover products and services (reduced the sales-delivery-collection cycle)
Reduce slow-moving stocks.
Sell any unnecessary assets.
Improve Productivity
Here are some strategies to help you turbocharge your existing assets, production lines, and staff force for greater productivity!
Identify the key success factors driving your results and establish goals for them.
Examine your achievements and setbacks, risks and trends, and use dashboards to display your findings.
Employ management tools such as KPIs (Key Performance Indicators), OKRs (Objectives and Key Results), and OGSM (Objectives, Goals, Strategies, and Measures) to measure and manage crucial areas. These are excellent tools for strategic planning and goal management.
Put in place strategies to monitor progress and make necessary adjustments.
Maximize your business success by tapping into valuable financial insights. Consult experienced accountants and business advisors to obtain the information you require.
We hope these suggestions will assist you in turning adversity into opportunity.