"Recession Proof" your business

Monday, 14 February 2011

Small and medium sized business may be wondering what the next twelve months hold in store.  The effect of severe and weather and general economic downturn make it easy to be depressed about the future.  However, now is the time to review your business and decide what you can do to both survive and prosper once the economic climate improves.

Most businesses only turn to solicitors for legal advice when things go wrong but at MacLachlan we help businesses prepare for and adapt to changes which are necessary to survive in the current climate.  Our advice is to be pro-active and not reactive, to embrace the challenges of recession and to become leaner and fitter making it easier to compete both now and in the future.  There are a few key points that we consider vital in running any business:

1. Manage Your Cash Flow: MacLachlan Solicitors can take legal action to recover debts at minimal cost to you and ensure that your billing is prompt and accurate.
2. Review Your Terms and Conditions of Trading: Make sure you can add interest to debts, to specify the time for payment and to state what happens should there be a dispute.
3. Employee Relations:  Employees are an essential part of any good business and this area of law is heavily regulated.  You need expert legal advice in drafting contracts, varying contracts and especially when making difficult decisions about recruiting or retaining staff.  Do not think you need go it alone as this area of law is difficult and there are penalties for getting it wrong.  It can be extremely expensive if you do not follow the correct employment procedures.  Save both time and cost and ask for help on an ongoing basis to ensure that you get the best out of your employees to help your business.
4. Banking:  Be in regular contact with your bank and let them know how the business is going.  They will see your bank accounts but often need to understand the background which they can only get by talking to you.
5. Competition and Client Care:  Make sure you understand what your customers want and check what your competitors are doing.  If your competition are struggling it might give you an opportunity to expand.
6. Cash Flow is King:  The crucial element of any business is cash flow.  Make sure that you bill regularly and manage customers’ credit.  Small debts unpaid often become larger debts with a corresponding impact on the business.  The essence is to make sure that you are profitable and not just earning money.  You may need to take tough decisions to cut costs and unnecessary expenses.  Remember good business can fail because they have one or two poor months!
7. Suppliers:  Remember your suppliers may be reviewing their business as well and this can give you the opportunity to re-negotiate price and delivery times at more favourable rates.
8. Take Action Now: Do not wait for the problems to arise or for them to become too big for you to handle.  Get good advice now.

MacLachlan offer a business review and advisory service which is a cost-effective way of identifying the strengths and weaknesses of your current business structure and to give you advice and assistance. For more information contact Mark Griffin on 01747 822103 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it