1: Develop an emergency fund to help get you throughout the unexpected occurrences that are bound to happen in a slow economical time. Work on setting aside $1000.00. This should be used for the worst case scenario.
2: Do not take on any new debt for the next 18 months.
3: Begin collecting all past due accounts. If you do not have personal to do this, look to a factoring company to collect those debts. If a factoring company says the debts are to old or cannot be collected, hire a collection firm. Getting 20 cents on the dollar is better than getting nothing. It is better to have a factoring company or a collection company doing this than for you to waste your time. Besides they have the skill and tools to get money.
4: Start making those sales calls to the companies that have turned you down in the past.
5: And the most important of them all is always have an exit plan. Many people in business for them selves never have a exit plan. Do you plan on retiring from your business, leave it to the kids, or the wife if something happens. What does your profit and loss look like?
Most people looking to purchase a business want it to have high profits and little loss. Are your going to sale the assets to get your retirement set up?
Reposition your business. The best course for action is to start at the basics. Know how much revenue you produce against your costs. Know your accounts receivables and the quality and diversity of the clients you have. NEVER PUT ALL OF YOU EGGS IN ONE BASKET. Manage all of your assets with a plan.
Be prepared for those lean times, they will come when you least expect them.
Be willing to listen. Look for innovative ways of doing business and cost saving revenue producing streams. Look for information outside of your standard business areas.
Another big one is know the risk your customers represent to your revenue producing capacities. Whats there credit rating? How is there payment history? What are there projections for growth? What are there weaknesses?
Do not let a single company represent any more than 25% of your total revenue or accounts receivable.
Continually farm and look for new business and means of creating business.
Do not divert cash from your company for personal use. You draw a salary or a wage and it needs to be paid as such. It should not be paid from the profits or whats left at the end of the month for the company to grow.
Comments