Insight Associates provide outsourced accounting and Finance Director services to ambitious and growing businesses. We work as your only resource or with existing staff to give you complete financial support including monthly management accounts, high level financial advice, robust controls and financial systems, funding and business planning, payroll & compliance, VAT returns and statutory compliance.

Successful business leaders have all the information they need to make good decisions…Do You?

Wednesday, June 17, 2009

7 deadly business sins to avoid in a recession

I recently saw this excellent article posted on web site based in Australia, and thought it was worth repeating here (having got their permission of course!!).

This is all so true and I like the use of the sins ...

Envy
If big businesses are hurting financially, smaller suppliers that are more reliant on cash-flow will be hurting even more. Rather than envying their cashed-up clientele, suppliers may need to sit down with customers and restructure project schedules and payment terms to facilitate regular progress payments and deal with cash flow issues. Most customers will appreciate the need to keep key suppliers afloat, especially where they have developed good business relationships.
Lesson: On the conduct of each depends the fate of all (Alexander the Great)

Pride
Market forces shift, industries evolve, customer expectations change – especially during recessions. How resilient is your organisation to change? If your business is based on widget making, can the market be widened to increase your customer base? Alternatively, if customer demand for your services is waning, have you considered ways to re-brand, re-fresh or re-conceptualise your service offering?
Lesson: If you don’t change, you will become extinct.

Greed
The credit crunch has forced many businesses to delay forecast spending and put non-essential projects on hold. As a result, SMEs that were dragging out commercial negotiations or pushing for higher fees back in 2008 may now be left high, dry and without service fees.
Lesson: A bird in the hand…



If you would like to read about, Sloth, Gluttony, Lust and Wrath (!!) take a look at the Dynamic Business website here. Then take note!!

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