With the current financial crisis in the UK worsening, some experts are beginning to predict the likelihood of the country facing a recession, and you may be concerned as to what impact this will have on your business.
A recession is a period of negative economic growth that lasts for two or more consecutive quarters. The likely cause of an upcoming recession is a result of multiple factors. Multiple successive UK lockdowns, Russia’s invasion of Ukraine and soaring energy prices have all played a part in the economic crisis that could lead the country into a recession later this year.
With the growing likelihood of a recession, businesses need to be adequately prepared for any negative effects that may occur. Thankfully, our teams of specialists here at Aston Shaw can help you and your business mitigate any potential risks. In this blog, we have compiled some top tips to ensure you and your business are ready to face the challenges a recession could bring.
Closely monitor your cash flow
Monitoring and managing your business’s cash flow should remain a top priority when preparing your business for a recession. Our cash flow forecasting service can ensure that you fully understand the money your business receives and pays out and will help you prepare for the negative effects of a recession. We can help you by:
- Negotiating bank overdrafts
- Obtaining additional funding from banks and private investors
- Credit control
- Invoice factoring
- Financial control
Find out more about our cash flow forecasting service here.
As well as this, if your business requires extra cash due to the effects of a recession, our invoice financing service can be used in conjunction with our cash flow forecasting service. Invoice finance allows funds to be drawn against invoices as they are raised, not when your customer pays you. Find out more about our invoice finance service here.
Focus on your people
Although downsizing is inevitable for some businesses during a recession, staff retention should remain a top priority. Your staff is the lifeblood of your company, and it will be more important than ever to keep morale high. There will also come a time for operations to return to normal and it would be unwise to do that at a reduced capacity. Consider options such as reducing hours and providing flexible options instead. Our HR consultancy team can help you with this, get in touch today to find out more.
If your business does need to cut costs, it’s a good idea to use key performance indicators (KPIs) to monitor which services are adding valuable profit to your company and which services aren’t contributing as much. Being free of any financial burdens is a great way to make sure you’re ready for a possible recession. This can also provide a better understanding of which services can be pushed, and those which don’t require as much focus.
By bearing these points in mind, your company can remain steadfast against any obstacle it encounters as we all enter into this potential latest recession. Take the time to focus on your brand, customers, and staff, to unlock the key to success.
Keep your customers a priority
Customer retention should be a key focus during a recession, so make sure you’re allocating enough funding to marketing resources. Although it may seem like a viable option when looking to cut costs, marketing will be more important than ever during a recession. Continued marketing can help mitigate any drop in sales that may occur, and enables your brand to stay connected with your customers.
If you’re concerned about the effects a recession may have on your business, get in touch today for a free, no-obligation consultation to find out how we can help you safeguard your business in the event of a recession.