Can we prevent insolvency?
In this blog we discuss that sometimes things in business happen and there might be a genuine reason as to why your customers have been unable to pay for services rendered. Sometimes, once you take the time to ascertain why they cannot pay, the solution is easily fixed.
As of late, you can’t watch the news without hearing about yet another shop falling down to insolvency on the high street and getting ready to close their doors. But why is this happening and how can you prevent your business from facing the same fate?
Business has never been an easy game to play, but it’s getting more and more difficult to compete and survive the digital age of online shopping. Trends in everything from tech to fashion to food changes quicker than ever before – staying ahead of the game is tough but not impossible. So what are the major causes of insolvency?
● Lack of interest – Things change every day with the use of a hashtag on Instagram or a popular influencer. Whatever or whoever is helping to shape the current trends, it is essential that you adapt, and that you do so quickly. It doesn’t have to be a change in products; it can also be your brand’s beliefs, ethos, and your marketing and online presence. We live in a time where we are conscious buyers – we want to buy from reliable brands who are current and move with the times, not stay in the past.
● Relevancy – is your business relevant? If not, why is that? Are you targeting the most active audience, are you on trend? Are your products or services available to find out about online or only in the real world? Or do you still rely on Yellow Pages?
● Seasonal changes – does business pick up during the winter or summer and decrease throughout the rest of the year? This can play a part when falling victim to insolvency.
Your business might be hitting all the right notes by having a presence on all the social networks, updating your blog regularly, and appealing to the best audience for you; but are you managing your business and team to the best of your ability?
Although the way we work in the office environment is changing, not everyone is following suit. But updating how things work internally, can help change things for the better externally. Invest in training whether this is developing SEO (search engine optimisation) skills or getting to grips with PPC (pay per click); invest as it is likely to pay off. Don’t leave staff feeling unmotivated, under skilled, and unchallenged.
If all the above factors are on the right path, then it might be your finances that are letting your business slip. What can you do to avoid debt and not feeling anxious every time you look at your bank account?
● Request credit limits that fit your business better as well as payment dates – remember the phrase, you don’t ask, you don’t get – take that chance. Many companies are likely to want you to succeed and want to help you.
● Cutting costs – Are you hemorrhaging cash unnecessarily? Where can you cut back? Do you need to pay for a fancy breakfast conference? Or the hundreds of pens and pencils scattered around the office?
● Location, location, location – if the costs for your building are sky high, then it’s time to relocate. You will have finances leftover this way to pay your fees, invest in training, as well as pay for things such as outsourcing.
● Maintain a better cash flow – it is essential to collect on time so that you don’t fall behind on your own payments.
We understand that sometimes things in business happen and there might be a genuine reason as to why your customers have been unable to pay for services rendered. Sometimes, once you take the time to ascertain why they cannot pay, the solution is easily fixed. The appropriate steps can be taken. For a helping hand reconnecting with your customers and getting back on track, get in touch with us today on 0800 953 3631 or visit our website and start a chat session with one of our Business Development team.