Surviving the Crunch
02 October 2008
We’ve compiled a list from all the best advice we’ve found on how a business can survive the credit crunch…
Will Self of the Evening Standard recently expressed his disgust at the state of the economy, pointing the finger at the greedy bankers and city boys for creating the crisis but what about the individuals and businesses who are facing the consequences?
• According to smallbusiness.co.uk, the trick is to plan, plan and plan. What you must not do under any circumstance is bury your head in the sand and hope it will go away.
• Look around at the deals available with banks and credit facilities- you may find that there is a better one that will save you money.
• Make paying credit card debt or other loans a priority to avoid paying interest- especially as there is a good chance rates could go up.
• Try not to consolidate debts as most of these schmemes turn your insecure debts into secure ones- which means you could lose your home and business. If you are having trouble paying a bill, keep in contact with the company you are owing to and let them know the situation- you want to try and maintain a good relationship.
• Do not let people get into more credit than you are prepared to lose or the knock on effect of a client going bust could mean your next.
• Can major investments and expenditure be delayed or rescheduled?
• If you are an importing or exporting foreign exchange hedging could be beneficial.
• Your staff may not be happy about it but it is better that there job is secure rather than they receive a pay rise and are made redundant a month later as a result. Act on the side of caution.
• Consider the benefits of putting employees on temporary or fixed term contracts.
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