Beat the credit crunch: survival tips for small businesses from XLN Telecom

[clareatxln]

The credit crunch in the UK sees banks tightening the reigns on lending to small businesses. Those small businesses, who are viewed as risky investments by banks even in boom times, will now find it harder than ever to secure loans.

There are a number of ways in which small businesses can prepare for a financial downturn. Here are a few simple steps you can take to help weather the storm:

Review your current bank
Your bank will play a key role in your credit crunch survival, so it’s important to know you’re getting the best deal for your business. If you are considering switching accounts to a new bank, thoroughly investigate your options. Compare the various deals, and be sure to pay attention to the fine print – watch for hidden charges and any clauses which may affect your interest rate.

Get tough on accounts owing
During a recession it is important to ensure your client accounts are paid on time. Larger clients will be adopting their own strategies to retain funds, so may be paying even later than usual. Don’t be afraid to get tough, a good client will understand that you’ve got a business to run too, and that receiving payments is an essential part of maintaining a steady cash flow.

Try to keep staff costs down
Paying employees is an unavoidable cost in most businesses, but some careful consideration of how this money is spent can go a long way. Before recruiting new staff members, evaluate whether existing staff could fill this gap or if the necessary task can be completed by using the services of a Virtual Assistant. If new staff must be employed, ensure this recruitment is effective. Recruiting can be an expensive procedure, so it’s important to get it right the first time.

Thanks
Clare

[Brian Turner]

So how many of these tips have you implemented, Clare?

Simply curious that as a telecoms company, you're offering energy saving and financial tips, which are fairly basic. And nothing on SIPP so far.