7 ways to protect your business against a downturn

At James Todd & Co we can provide businesses in the Chichester area with advice and support on a wide range of business issues. This article suggests 7 ways to protect your business against a downturn.

Small and medium-sized businesses are particularly vulnerable to economic downturns. But all too often we see companies going under that could have stayed afloat if they had taken a few elementary precautions at the right time.

The right time to protect your business against a downturn is when it is relatively strong and you still have room to manoeuvre.

Here are seven steps you should consider taking:

  1. Don't rely on just one or two main accounts for the bulk of your revenue. Spread the risk by expanding your customer/client base.
  2. Maintain close communication with your bank and share your successes and failures with them.
  3. Reduce the debtor days on as many accounts as possible and accustom your customers to paying promptly.
  4. If you have to reduce spending, do so in non-core areas of the business.
  5. Examine ways to carry less stock without adversely affecting your core performance
  6. Don't lay off staff unless you really have to, especially those who provide ideas and inspiration. Use any downturn as an opportunity for key staff to develop new skills and coach newer members.
  7. The marketing budget is often the first casualty in a recession, but smart businesses continue to market through a downturn and position themselves to take full advantage of the upturn as soon as it starts.

If you are in the Chichester area and are looking for support and help from experienced accountants and business advisers, contact James Todd & Co.

Try a site search Tax return, dividends, pension, autumn statement...

SagexeroCCCI
Company details

01243 776938

James Todd & Co, 1&2 The Barn, Oldwick, West Stoke Road, Chichester PO18 9AA
James Todd & Co, 16 Northgate, Chichester, West Sussex PO19 1BJ
Copyright

© 2021 James Todd & Co. All rights reserved.

We use cookies on this website, you can find more information about cookies here.


James Todd & Co is the trading name of James Todd & Co Limited. Chartered Accountants and Registered Auditors. Registered No: 07350649 in England. VAT No. 322087875. ICAEW Firm Reference No: C002730145 and James Todd & Co (Lewes) Ltd (formerly known as Axtons). Chartered Accountants. Registered No: 11214467 in England. VAT No. 290460506. ICAEW Firm Reference No: C005791297

Registered to carry out audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details of our audit registration can be viewed at www.auditregister.org.uk

Details of our Designated Professional Body (DPB) activities can be viewed at register.fca.org.uk. A member of the ICAEW Practice Assurance Scheme.