Latest Blog Entry

A Retiring Glance At Trade – Past, Present And Future

As my tenure at UK Trade & Investment draws to a close, it’s time for a little reflection…

Read More

Simple Steps That Make A Difference

New Barclays

14 June 2009

Elizabeth Robinson

Whilst the economic climate poses challenges to businesses, there are some fundamental steps, analyses, cost cutting measures and simple precautions companies can take that can make all the difference to not just keeping afloat, but retaining market share, competitive advantage, customer loyalty and possibly even opening new routes to business.

Simple steps that make a difference

Ken Ackroyd

Regional Director Trade Sales, Midlands and Eastern, UK Cash & Trade

Barclays Commercial Bank

 

Whilst the economic climate poses challenges to businesses, there are some fundamental steps, analyses, cost cutting measures and simple precautions companies can take that can make all the difference to not just keeping afloat, but retaining market share, competitive advantage, customer loyalty and possibly even opening new routes to business.

 

Review the Management of Your Business

The real key to business success is strong and effective management. It goes without saying that attributes such as motivation, communication, leadership and commitment to the business are critical. Beyond that think about factors such as the management structure, is it appropriate for the size and complexity of the business? Are there effective/ fully involved non-execs? Is the management receptive to outside advice? Is the management focusing the business on the right value adding activities?

 

Maximise Your Cash Flow

Working capital can either be a major drain or generator of cash so it is important to understand how much cash is tied up in the business’s working capital cycle (i.e. debtors, creditors and stock). Once you understand this cycle you can look at options to reduce the capital tied up in the business and to free up cash-flow. There are a range of financial solutions which can help including Asset Finance and Sales Financing which can help you to release cash from your assets and debtor book.

 

Restructure Your Debt

It may be appropriate to consider restructuring your debt to see if you can benefit from switching some of your short-term borrowing to a longer term loan. Think about reviewing your borrowing to ensure it’s in line with the duration of contracts and cash being generated by the business?

 

Clarify Your Strategy and Minimise your Risk

Be clear on the strategy being pursued for the organisation and understand the capacity and capability within the operation to cope in a downturn. As mentioned previously unstable market conditions bring increased risk of interest and exchange rate fluctuations. You should consider fixing or capping your interest rate exposure and actively managing your foreign exchange risks if you trade internationally. From a wider risk perspective you may want to consider taking appropriate insurance cover for debts and key employees as well as the more conventional insurance requirements.

 

Keep Talking to Your Bank

It is crucial to communicate with your bank, to inundate them with information about the financial health of your business and any changes in strategy. This way there is no surprises, and your bank can help you plan for the future far more effectively if you bring them with you at each step.

 

FREE Trade Review for emita members:

 

As part of Barclays sponsorship with emita they are pleased to offer a free 1 hour session with our local Trade Director to all members. This offer is available to both existing customers of Barclays Commercial Bank and also to non-customers.

 

To make the most of this opportunity please contact emita on 0115 9471767.

 

 


For more insights from Barclays Commercial Bank’s Turning the Corner campaign please go to www.barclayscommercial.com/turningthecorner

Comment On This Page

Name *

Your Comment *

CAPTCHA Image

Please enter the CAPTCHA text from the above image :

Please note all fields marked * are mandatory


Well put, sir, well put. I'll ceriatlny make note of that.

Chandan
2012-12-04 14:09:39


MMI35d <a href="http://puassqwuajdj.com/">puassqwuajdj</a>

mfsmyqs
2012-12-05 10:40:21


3vHYY3 , [url=http://djovbznpjwml.com/]djovbznpjwml[/url], [link=http://huctcjghjnos.com/]huctcjghjnos[/link], http://uedpksgbycyg.com/

rsnwpmn
2012-12-05 15:57:33


xptLix <a href="http://qpoprbmwmqgr.com/">qpoprbmwmqgr</a>

ryzdng
2012-12-08 23:44:49


PO1ZJ7 , [url=http://hmxphtpoxumu.com/]hmxphtpoxumu[/url], [link=http://uotzjydrpeyq.com/]uotzjydrpeyq[/link], http://dfpasjbeklel.com/

ipshvehh
2012-12-10 13:56:38


Search

Existing Members



Forgotten details

Register For Membership
Sign Up For Our Newsletter