Almost every business has felt an impact from the economic downturn. There has been no escape.
Some small businesses fervently believe that with a few modest adjustments they are surviving but the truth might be a little more unpalatable. The fact is that the bottom of the downturn is yet to be reached and any real upturn could take some time.
Gerald Irwin of Sutton Coldfield based Licensed Insolvency Practitioners and Business Advisers, Irwin Insolvency is of the opinion that by making the right choices now could well see results later down the line.
“It is imperative to eliminate any excessive debts. When revenues drop debt becomes difficult to service but most debts can be worked out once evaluated. It may also be necessary to downsize by reducing the headcount as it is possible to deliver the same amount by increasing productivity. Businesses should be tracking finances regularly. By installing a key indicator system it is then possible to produce regular financial reports. These indicators should be used to focus on the most profitable products or services of the business. Absolutely nothing should be made that is unlikely to produce a profit,” said Mr. Irwin.
The fundamental key to survival is to manage the business effectively, focus on quality, get smaller and more efficient or fail. There again, life is about choices and it is timely to adopt the right one.