Ten top tips to ride the economic storm

Jason Heath, construction specialist at Bibby Financial Services offers the following tips to help businesses prepare for the year ahead and maintain profit margins.

• Plan - now is a great time to think about where you are heading. Be sure there is a demand for your services and identify who the competition is and what they are doing. Furthermore, don't forget to review your business plan regularly. Many sectors move rapidly - what you've decided upon even a month ago may no longer be relevant.
  
• Pace yourself - budgeting is essential at all stages of the business lifecycle, and investing too much too soon may lead to a business becoming over-stretched. Be realistic when forecasting, rather than setting impossible targets.
  
• Credit where it's due - negotiate longer credit terms with your suppliers but set shorter terms for your customers. Consider how early settlement or volume discounts could benefit your business.
  
• Cash is king - cash is fundamental to any company and businesses must recognise the importance of generating cash and keeping it coming in. In the event of a cash flow blockage, explore alternative funding methods such as invoice finance which can release up to 85% of the cash tied up in unpaid invoices within 24 hours of being raised.
  
• Streamline - look at ways in which internal processes can be carried out more efficiently and don't be afraid to cut out wasteful tasks. Review your suppliers regularly to ensure their quotes are competitive and offer best value for money.
  
• Delegation's what you need - by delegating time-consuming non-essential tasks to other staff members, owners and manager will be freed to focus on the business' core activities such as generating new business.
  
• Ask the experts - seek external advice from an independent source such as an accountant, lawyer or business adviser. But remember to choose carefully - it is imperative that you select someone who appreciates your needs and understands which direction you want the business to go. Counsel from an outside party brings a fresh perspective and avoids hasty decisions being made.
  
• Honesty is the best policy - be realistic. If things are not working out how you thought they would, address the reasons why this is happening and find a new approach.
  
• Roll with the punches - every business, at some stage or another, will experience a certain level of difficulty. Be decisive by tackling any problems head on and dealing with them promptly.
  
• Don't panic!