Insights on Financial Strategies
Time for a Business Health Check
Caught in the economic downturn?
The key to operating a successful business and making money in an economic downturn or recession is to know where your business performs well and where it can improve.
The signs of a healthy business are sustainable profits and strong trading cash flows, whereas the symptoms of a business under performing and at risk of being infected by a recession or downturn, include declining sales with high fixed costs.
People who care about their health visit an expert - their Doctor.
Business owners who care about their business should similarly visit an expert - their Accountant (hopefully Cliftons) - to complete a business health check.
Prevention is better than cure!
To ensure your business remains healthy and continues to prosper in these uncertain times, you should undertake a business health check. A visit to your trusted adviser can protect your business from the full effects of a recession and better prepare you for recovery.
Consider the following questions, with a score of 1 to 5 ( 1 = Poor, 5 = Excellent);
- Have you segmented your customer sales to identify profitable products / services and risky customers?
- Do you use benchmarking to identify your business strengths and weaknesses?
- Does your debtors policy include discounts for early payment and personal guarantees for large customer accounts?
- Does your approach to managing staff include capping salary increases and paying performance incentives?
- Do you have systems and procedures in place to reduce the business reliance on you?
- Do your business protection strategies include adequate risk insurance?
Speak to Clifton Accountants today.
Make sure your business thrives, not just survives, into the future.