Most small businesses will fail, this is unfortunately a fact and one that is unlikely to change anytime soon, perhaps even increasing given the current economic situation, but here a are couple of useful observations from our small business accountancy clients in Guildford which may help you.
Good business advice tends to be wrapped up by common sense and practicality, qualities that most successful entrepreneurs have in abundance.
Know what a customer is worth to you.
If you spend a lot of time on a client or have difficulties with a client, chances are they might not be contributing to your bottom line, or possibly even creating a loss. You may be better off not servicing the client, or reviewing your charging structure for difficult clients.
There is no point in being a busy fool.
Know your costs
The successful business in Guildford have good real time information systems, often using cloud based accounting systems, to help with their decision making. If a financial problem does occur then they can react in quick time to it.
If costs need to be reduced, or headcount reduced, they can do this quickly before it jeopardises the entire business.
Watch your Cash
Successful start ups are very careful that any expenditure is more that matched by income and also run cash positive. If you have a little bit of cash in the bank it give you options if things do become difficult.
Sherwin Currid Accoutancy assists many small businesses in Guildford with business advice and accountancy assistance. If you are a small business in Guildford then you should speak to us.