7 ways to protect your business against a downturn

Protect your business against economic downturns.

At Harding + Associates we can provide businesses in the West Sussex area with advice and support on a wide range of business issues. This article suggests 7 ways to protect your business against a downturn.

Small and medium-sized businesses are particularly vulnerable to economic downturns. But all too often we see companies going under that could have stayed afloat if they had taken a few elementary precautions at the right time.

The right time to protect your business against a downturn is when it is relatively strong and you still have room to manoeuvre.

Here are seven steps you should consider taking:

  1. Don't rely on just one or two main accounts for the bulk of your revenue. Spread the risk by expanding your customer/client base.
  2. Maintain close communication with your bank and share your successes and failures with them.
  3. Reduce the debtor days on as many accounts as possible and accustom your customers to paying promptly.
  4. If you have to reduce spending, do so in non-core areas of the business.
  5. Examine ways to carry less stock without adversely affecting your core performance
  6. Don't lay off staff unless you really have to, especially those who provide ideas and inspiration. Use any downturn as an opportunity for key staff to develop new skills and coach newer members.
  7. The marketing budget is often the first casualty in a recession, but smart businesses continue to market through a downturn and position themselves to take full advantage of the upturn as soon as it starts.

If you are in the West Sussex area and are looking for support and help from experienced accountants and business advisers, contact Harding + Associates.

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01293 855425

Harding + Associates LLP, Copthorne Business Suite, Copthorne Way, Copthorne, West Sussex RH10 3PG

ICAEW Firm No. C006101380

About us

Mike Harding, owner of Harding + Associates, has been working in practice for over 25 years. With his wealth of experience and knowledge gained over the years, Mike decided to branch out and start his own practice, bringing with him his support team, alongside his loyal clients.

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