The “credit crunch” is now officially one year old. However, despite the continual broadcasting of economic doom, it is the firm belief of London accountants Carter Backer Winter (CBW) that most businesses have sufficient stamina to weather the storm.  

However, capitalising on this stamina will require business leaders to carry out a thorough review of all the resources at their disposal. Each resource should be considered separately to determine if it is under any threat and/or how much it could be leveraged in a crisis if necessary.

It would be prudent to conduct this exercise now given that there is never the luxury of time once a   crisis has arrived.

Below London accountants Carter Baker Winter (CBW) provide a checklist of resources that every business should be reviewing. However, each business will have additional resources that are particular to them.

Human Capital

How might the business:

· Reduce non essential tasks

· Reduce head count

· Capitalise on skills

· Improve productivity

· Cut back on overtime

· Use casual/temporary staff

· Reduce directors’ salaries

Overheads

How might the business:

· Cut or suspend functions

· Outsource functions if doing so creates a cost saving

· Sell spare capacity

· Improve energy efficiency and waste management

Suppliers

Is it possible to renegotiate?

· Prices

· Credit terms

· Order sizes

· Add on costs such as delivery or  insurance charges

Your product or service lines

· Maintain your quality standards

· Discontinue less profitable lines

· Ensure T&Cs are appropriate

HMRC “costs”

· Negotiate tax payments 

Customers

· Be aware of any who may be under financial stress

· Keep tight control of credit

· Do not allow late payments

Banks and stakeholders

· Seek additional resources from the bank or other stakeholders

· Involve them in the planning process to give them confidence in the business

New opportunities

· How might the business capitalise on emerging opportunities:

· Sell cheaper alternatives

· Offer money-saving options   (e.g. bulk buying discounts)

Talk to your accountant It’s never too early to discuss your situation with your accountants. 

Need further advice? Got a question? Then visit London accountants Carter Backer Winter (CBW) website