| ext">However solid your business plan, there is no | | | | should be incorporated into it to ensure that IT |
| way to predict the future, but what you can do is to | | | | problems are minimised in the event of an |
| plan for unforeseen circumstances. There are a whole | | | | emergency. |
| host of factors that can have a financial impact on a | | | | 5. Reduce your outgoings. By looking at regular costs |
| small business, and in times of economic uncertainty, | | | | such as utilities and bank charges, you may well be |
| it is a sad fact that many small businesses that | | | | able to find many savings. According to research, a |
| encounter a major disaster never resume trading. | | | | UK small business can save around £3,500 each |
| Steve Jennings from Alliance & Leicester Commercial | | | | year on their banking costs by shopping around for |
| Bank has the following advice to help businesses to | | | | the best possible deal. |
| plan for the future to prevent the unpredictable from | | | | 6. Deal with bad debts. Late payments can be |
| becoming the unmanageable: | | | | crippling, especially if they account for a large |
| 1. Keep a business diary. New legislation can have a | | | | proportion of your business’ income, so credit |
| major impact on your margins, so make a note of | | | | check new customers, and dedicate some time each |
| dates when legislation or tax changes come into | | | | month to chase outstanding money. |
| force so that you can prepare well ahead of | | | | 7. Create a contingency fund. You need to have a |
| important deadlines. | | | | financial buffer in the event of an emergency, so |
| 2. Market changes. Your market can change in a | | | | don’t leave surplus funds sitting unused. Set |
| number of ways from new competitors through to | | | | aside regular sums in a high-interest business deposit |
| changing initiatives within your industry. By keeping | | | | account. Interest earned on this money can be used |
| abreast of any changes you can make appropriate | | | | to pay for your quarterly VAT or annual tax |
| adjustments to your business plan, and prepare for | | | | expenses. |
| the impact of any major market changes. | | | | 8. Update your business plan. Changes to your |
| 3. Monitor interest rates. Business banking interest | | | | situation can cause your business plan and budget to |
| rates can change quickly, and are announced on a | | | | go out of date relatively quickly. By keeping a record |
| monthly basis. A rise can have a big impact on your | | | | of actual figures against predictions, you can spot |
| outgoings and income, so if you are borrowing | | | | variations quickly, and amend your forecasts to take |
| money, look for a fixed rate, as this will allow you to | | | | them into account. |
| budget more effectively. | | | | 9. Insure yourself. Ensure that you have the right |
| 4. Be prepared for disasters. Every business needs a | | | | type of cover for your business. By finding a flexible |
| continuity plan that outlines key members of staff | | | | insurance policy with business interruption, as this will |
| along with specific tasks, this will allow a swift | | | | provide for you under circumstances that could |
| recovery and a quick return to normal business | | | | otherwise result in loss of earnings. |
| operations. If your business makes use of a | | | | 10. Arrange an overdraft. With a business overdraft, |
| computer system, off site storage and back ups | | | | you can get access to short term finance. |