| ext">However solid your business plan, there is no | | | | system, off site storage and back ups should be |
| way to predict the future, but what you can do is to | | | | incorporated into it to ensure that IT problems are |
| plan for unforeseen circumstances. There are a whole | | | | minimised in the event of an 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, it | | | | such as utilities and bank charges, you may well be |
| 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 the |
| Bank has the following advice to help businesses to | | | | best possible deal. |
| plan for the future to prevent the unpredictable from | | | | 6. Deal with bad debts. Late payments can be crippling, |
| becoming the unmanageable: | | | | especially if they account for a large proportion of your |
| 1. Keep a business diary. New legislation can have a | | | | business’ income, so credit check new |
| major impact on your margins, so make a note of | | | | customers, and dedicate some time each month to |
| dates when legislation or tax changes come into force | | | | chase outstanding money. |
| so that you can prepare well ahead of important | | | | 7. Create a contingency fund. You need to have a |
| 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 to |
| abreast of any changes you can make appropriate | | | | pay for your quarterly VAT or annual tax expenses. |
| adjustments to your business plan, and prepare for the | | | | 8. Update your business plan. Changes to your situation |
| impact of any major market changes. | | | | can cause your business plan and budget to go out of |
| 3. Monitor interest rates. Business banking interest | | | | date relatively quickly. By keeping a record of actual |
| rates can change quickly, and are announced on a | | | | figures against predictions, you can spot variations |
| monthly basis. A rise can have a big impact on your | | | | quickly, and amend your forecasts to take them into |
| outgoings and income, so if you are borrowing money, | | | | account. |
| look for a fixed rate, as this will allow you to budget | | | | 9. Insure yourself. Ensure that you have the right type |
| more effectively. | | | | of cover for your business. By finding a flexible |
| 4. Be prepared for disasters. Every business needs a | | | | insurance policy with business interruption, as this will |
| continuity plan that outlines key members of staff | | | | provide for you under circumstances that could |
| along with specific tasks, this will allow a swift | | | | otherwise result in loss of earnings. |
| recovery and a quick return to normal business | | | | 10. Arrange an overdraft. With a business overdraft, |
| operations. If your business makes use of a computer | | | | you can get access to short term finance. |