Keeping your company solvent and growing during a recession
Our Albert O’Connor & Co Accountants staff understands that keeping your business afloat through a downturn, such as the one we’ve recently experienced in Ireland, requires agility, innovation, and resourcefulness. Flexibility in the face of adversity is also likely to be a key factor in your company’s survival during a recession.
Albert O’Connor & Co Accountants has some advice to assist you in keeping your business afloat and prospering during a slump.
Improving your cash flow – money will be scarce during a downturn, and your cash flow situation will most certainly be bad. To enhance this, you must be proactive in cutting costs, billing on time, following up on outstanding bills, and ensuring that the least amount of cash goes out of the firm and the most come in.
Negotiate with your suppliers – If you can get a better deal from your suppliers, it will help you improve your cash flow situation. Negotiate better terms or lower costs with your suppliers, and talk to your landlord about a rent reduction – or even a rent holiday if the situation is grave.
Accessing additional funding – when your cash reserves get tight, there may be a need to look for additional funding. This could mean asking your bank manager for an extended overdraft, approaching business lenders for a loan, or even looking at attracting private investors or private equity firms that may want to pump money into the business – although you’ll need a strong business plan for investors to be willing.
Evaluating your market offering – You must sell your products and/or services in order to make enough revenue to survive. For that purpose, it’s worthwhile to assess your market offering and make adjustments. Is it true that some products yield a substantially bigger return than others? If that’s the case, focusing solely on these products and having a smaller, more successful product variety could help you generate more money.
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