By Mark Wright on Small Business – Advice and Ideas for UK Small Businesses and SMEs
In recent years, a number of large businesses have gone into administration, and this hasn’t resulted from lack of sales or custom, but rather a lack of control over finances, such as cashflow.
In fact, pre-pandemic, one in seven UK small business owners have been left unable to pay their employees on time due to finance and cashflow problems, while earlier this year 31 per cent of B2C firms reported that they will run out of cash within the next three months.
As we begin to emerge from Covid-19 restrictions, there are a number of key changes business owners can make to improve their business finances, and quickly.
#1 – Calculate your costs
It is vital to know your costs and one of the best cost-saving exercises is to regularly review your suppliers. As the famous 1980s story goes, Robert Crandall, the then head of America Airlines, calculated that if he just removed one olive from every salad served to passengers, no-one would notice and they would generate an annual cost saving of $100,000.
So, as a business owner, ask yourself this question: what is your one olive? We all