1.Cash flow - Smart businesses look after their cash flow. Protecting your cash flow should be a priority. Put profit before turnover and ensure strict day-to-day control of money in and out of your business.

2.Credit – Keep an eagle eye on who owes you what. Review all your accounts to find out exactly how much you are owed and when original invoices were issued. Up to a quarter of a company’s annual turnover can be tied up in unpaid invoices.

3.Costs – Put fixed costs under the microscope and see where savings can be made. Consider leasing rather than buying vehicles or equipment. Organise a simple internal campaign to reduce basic bills – turning off lights and cutting down on time on the phone can make a big difference.

4.Stock – Tight control of stock can improve efficiency and reduce costs. Keep stock levels low by organising more frequent supplier deliveries. Consider discounts or incentives for customers, particularly on stock lines that are traditionally slow to move.

5.Pricing – Competitive pricing can give you the edge. Keep an eye on the competition. Compare your prices for products and services. Are your prices sustainable? Are you selling too cheaply? Conversely, will customers really pay the prices you demand?

6.Customers – Keep them happy – strong relationships are vital for long-term success. In a large number of companies, three quarters of business comes from just 20 per cent of customers. Make sure you know which customers they are and concentrate on making sure you are supplying what they want, when they want it.

7.Suppliers – their success can depend on yours – make sure you are getting the best out of them. Approach your suppliers and see if they can offer better prices or discounts for prompt payment. Get several to tender for new business and make sure you are not too dependent on one particular supplier – what would happen to your business if they were unable to supply?

8.Sales – getting your sales strategy right can turn slowdown into success. Is your sales activity focused on areas of greatest return? Focus on your most profitable and marketable products and services. Set realistic targets for your staff and reward tangible success – as soon as the invoice has been paid!

9.Marketing – effective marketing can improve productivity and profits. Review your marketing – is it targeted to give maximum returns? Look at your business plan and make sure your marketing effort is in step with it. Watch your competitors. See what they are doing and learn from their successes and mistakes.

10.Be prepared to make changes and implement them - There are no guarantees of future success, even for established businesses and in an unexpected crisis or a challenging economic environment you may be forced to make changes that you haven’t planned or prepared for. Identify and plan for the impact of any expected or unexpected eventualities that may occur, e.g. seasonal trends or an unexpected price rise in your stock. Make the changes necessary to ensure that your business will survive – you can not keep fulfilling unprofitable orders

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Paul Gray Corporate Relationship Manager for Barclays Bank
07775 553048
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