Protecting Your Business during a Global Economic Slowdown

Not surprising many companies come from a more positive economic phase and enter into a downturn with weak balance sheets, high staff turnover and a lack of risk assessment.

Protective Actions to be considered during a Downturn:

• Good Financial planning

• Start questioning early your credit facilities

• Maintain a meaningful dialogue with your Bank and other major creditors

• Review your Bank charges

• Review all your Direct Debit arrangements

• Tighten up credit control, cash collection, treasury management

• Consider your current and future customers and their ability to pay

• Pay particular attention to investments and major capital expenditure

• For December year ends - be clear about Stock and WIP

• Look critically at staff requirements/recruiting strategy

• Be cautious in awarding pay rise and in setting up staff incentives schemes

• Map your sales trends

• Know your costs

• Prepare detailed monthly accounts, share key information with your Bankers

• Prepare accurate Cashflow projections and update regularly


Our Vantage Performance team is looking forward to interacting with you again.

Regards,

Pedro Bueno

Vantage Performance Team
Turnaround Management Specialists
www.vantageperformance.com.au

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