Management
Issue No. 45 - Feb/March 2009
Renegotiate for recovery
Every advisor has ‘Top tips’ for surviving tough times; William Buck Director, Dennis Laundy says businesses should focus not only on surviving but also on how get ready for the eventual recovery.
“With thoughtful planning rather than panicmotivated decision making, businesses can minimise the effects of the current economic climate and position themselves to emerge stronger and more competitive when things improve,” Dennis says.
1. Assess the specific impacts on your business Different industries will be affected in different ways by the current economic climate. Businesses should understand the fundamentals of the industry in which they operate - how parts of a business are affected more than others. A pharmacist, for example, might see a drop in demand for expensive gift items, but customers will continue to have scripts dispensed and purchase other essential medications.
2. Handle bad debts with care Being vigilant in identifying customers who have historically kept within normal trading terms and suddenly fall outside those terms is very important.
While businesses should already have plans in place to deal with this, during an economic downturn it can sometimes be better to take action to help customers through hard times rather than cutting them off altogether and losing a major customer forever. This can be a delicate balancing act, particularly if you are owed a large amount of money essential to your own ongoing viability. It is im...
