Checklist advice for recession survival

WEST Yorkshire accountancy firm Clough & Company has launched an action plan to help SME’s survive the recession.

The checklist called ‘Trading Through Tough Times’ is designed to steer SMEs through the recession.

Steven Gash, managing partner at Clough & Company, said: “Many businesses have never experienced a recession before, so we’ve created this action plan using our experience and expertise to help them keep ahead during these challenging times.”

He added: “We’re in an ideal position to offer small businesses the Trading Through Tough Times plan as we have helped a significant amount of customers not only survive previous recessions but also thrive in them too.”

Key tips on the check list include:

• Given the change in market conditions, review your budgets and set realistic targets for the year.
• Clearly explain your firm’s strategy in detail to your entire team and get their opinion on what you’re planning. Not only will this ensure staff feel involved and valued but their feedback may prove insightful and of great use.
• Involve your team in a discussion on the likely trading conditions and get their input on reducing costs and maintaining revenues. Then use ‘bottom up’ budgeting, where everyone advises on areas within their control and target a specific cost saving.
• Establish your key performance indicators and measure on a weekly, if not daily basis.
• Review your portfolio of products or services and eliminate those that are not core or profitable.
• Review your debtors list and put extra effort into chasing overdue invoices.
• Put extra effort into maintaining and building strong relationships with your clients.
• Cut your ties with customers who can’t or won’t pay. This will save the extra
  resource and time that is often needed to service such clients.
• Agree extended payment terms in advance with suppliers – most will be amenable, providing you are upfront and honest.
• If appropriate, review your current banking facilities and discuss whether or not you need all of these facilities as well as the possibility of reducing the amount you pay for them.

Mr Gash continued: “These 10 tips have been derived from our experience of helping small businesses survive the past recession, and not only are they relevant to the current downturn, but they also cover sound business basics for running a successful small business.”