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Wednesday, November 19, 2008

Top Tips For Small Businesses To Survive The Recession

Here are some tips for small businesses to survive the recession .... courtesy of the everywoman network:

1) Know your cost base.

What costs are fixed (ie, costs that you HAVE to pay) and what are variable (ie, that are essentially optional or that fluctuate with sales). Splitting costs in this way will help you to pay what needs paying and cut back on what doesnt.

2) Good credit control

Dont let your clients use you as a bank, if they want a loan for goods or services - thats where they need to go! You should be paid to the terms on your invoice, or earlier. Start a policy of telephone chasing outstanding invoices when they are X days overdue, then follow it up with a letter. Make sure your invoice terms are clear on your invoices.

4) Asset finance

Think about whether you really need to pay upfront for an asset or piece of equipment, could you lease the equipment? perhaps over the short term until you are sure its required or that your business finances can support a longer term commitment.

Or I like this one:

"I have a sign (just typed and laminated!) above my PC screen - it tells me "This business is not participating in any recession"

The rest are here: Small Business Survival Tips

If you have any tips you'd like to suggest .... by all means please do so by adding them as a comment.

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