7 ways to protect your business against a downturn

Protect your business against economic downturns.

At Ling Phipp we can provide businesses in the Nottingham area with advice and support on a wide range of business issues. This article suggests 7 ways to protect your business against a downturn.

Small and medium-sized businesses are particularly vulnerable to economic downturns. But all too often we see companies going under that could have stayed afloat if they had taken a few elementary precautions at the right time.

The right time to protect your business against a downturn is when it is relatively strong and you still have room to manoeuvre.

Here are seven steps you should consider taking:

  1. Don't rely on just one or two main accounts for the bulk of your revenue. Spread the risk by expanding your customer/client base.
  2. Maintain close communication with your bank and share your successes and failures with them.
  3. Reduce the debtor days on as many accounts as possible and accustom your customers to paying promptly.
  4. If you have to reduce spending, do so in non-core areas of the business.
  5. Examine ways to carry less stock without adversely affecting your core performance
  6. Don't lay off staff unless you really have to, especially those who provide ideas and inspiration. Use any downturn as an opportunity for key staff to develop new skills and coach newer members.
  7. The marketing budget is often the first casualty in a recession, but smart businesses continue to market through a downturn and position themselves to take full advantage of the upturn as soon as it starts.

If you are in the Nottingham area and are looking for support and help from experienced accountants and business advisers, contact Ling Phipp.

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About us

Ling Phipp was founded in 1974 and nowadays has two partners, six managers plus trainees and support staff.

We serve clients in the East Midlands and all over the UK. Our out-of-town location, with easy parking, close to the M1 junction 25 (Nottingham/Derby - A52), is very convenient.

Company details

0115 949 6838

Ling Phipp, Cliffe Hill House, 22-26 Nottingham Road, Stapleford, Nottingham NG9 8AA


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Registered to carry on audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be viewed at www.auditregister.org.uk, under reference number 6424855. This is the firm number provided by the Institute of Chartered Accountants in England and Wales.