Tough Times Business Checklist

March 17, 2020

Jackie Wilding

The Tough Times Business action list

 

To help businesses prepare for and mitigate potential downturns in business caused by the current coronavirus situation, you can download our free Tough Times checklist compiled by Honeycomb partner Bryden Johnson.

The checklist helps you to consider both short and long-term factors, including customer and cashflow management, refining your processes and reviewing staffing.

For further help with ensuring your business is protected as much as possible, please get in touch with us today.

  • Review your Budgets and set realistic and achievable targets for 2020.
  • Get rid of won’t pay customers.
  • Review debtors list and chase up overdue invoices (if appropriate).
  • Offer existing debtors extended payment terms and/or discounts.
  • Make sure your terms of business contain explicit payment terms.
  • Assign responsibility to one individual for invoicing and collections.
  • Agree extended payment terms with all suppliers in advance.
  • If appropriate, review banking facilities and discuss future needs.
  • Put extra effort into making sure your relationships with your better customers are solid.
  • Review and flow chart the main processes in your business (e.g. Sales processing, order fulfilment, shipping etc) and challenge the need for each step.
  • Encourage team members to suggest ways to streamline and simplify processes (e.g. sit down and brainstorm about efficiencies and cost reduction).
  • Use ‘bottom up’ budgeting where everyone in the office gives input on areas over which they have control – target a 10% cost saving.
  • Review your staffing needs over the next few months.
  • Get your members of staff involved in a discussion of likely trading conditions and get their input on reducing costs and maintaining revenues.
  • Review your list of products and services and eliminate those that are unprofitable or not core products/services.
  • Establish your key performance indicators (KPI’s) and measure them on a daily basis e.g:
    • Sales Leads generated
    • Orders supplied/fulfilled
    • Cash balance
    • Stock Turnover
    • Debtor Days
    • Gross Profit
    • Net Profit
  • Review efficiency of business processes and consider alternatives such as outsourcing certain activities locally or overseas.
  • Pull everyone together and explain the business strategy and get their buy-in.

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