In Utopian terms it’s better to be safe than sorry, however in the current financial climate it may not be possible to be 100% prepared for all eventualities.
However some practical steps are outlined below which will assist you in being pro-active rather than reactive:-
• Always have a plan B – the worst can happen
• The liquidity preference theory - manage your cash flow.
• Make the bank manager your new best friend - keep them abreast of your current situation.
• Get up to speed with tax - question what can be done to improve tax cash flow and ease payments
• Price correctly - don't have a knee-jerk reaction to the market.
• Review your terms and conditions - What happens if you deliver products to a customer who closes down before paying you? What terms do you have in place to limit your liability if there are problems? On what grounds can the contract be terminated?
• Manage your Debt Collection
• Your people - Your people are your biggest asset, but also during times of downturn unfortunately also often your biggest area of cost. Have you complied with legislation in respects of contracts for your employees? Do you know their key terms of employment? If you have to deal with redundancy, do you understand the process?
If you are looking for sound, practical, commercial legal advice at excellent prices then please contact us at ://www.amberglobelegal.com/
