Credit and Finance, Growth, Management, Hints and tips, Small Business
How a business health check could help your business in 2019
Posted on by Jo Shaw
Estimated read time: 4 mins
Shake up your business and help it be the best it can be in 2019.
With the glitter and merriment of the festive season now a distant memory, the winter can seem like a long, cold and miserable season, with many people across the UK often suffering with a case of the ‘winter blues’.
However, the cold winter period doesn’t have to be all doom and gloom. With the start of a new year comes a fresh opportunity to plan for the next 12 months and beyond, and to shake up your business’ finances for a fruitful and successful year.
Getting back to basics
A good place to start is by assessing your company’s finances with a company health check. Tools such as Experian’s My Business Profile give you a picture of what creditors see before deciding whether to offer your business finance or not. Seeing your business credit score, and the factors that can affect your business credit score, can help you, if required, put clear plans in place to help improve it.
Getting rid of bad habits
It can be easy to pick up bad habits during the course of the year. Practices such as missing payment dates, invoicing clients late, not chasing late payments and filing annual returns and financial accounts late can all have a damaging effect on your business’ credit score and ability to secure future credit.
Instead, make sure you regularly check your business’ credit score using tools like My Business Profile so you don’t get caught out by any nasty surprises, keep an eye on your own personal finances (if you’re a startup or early stage business with a limited credit history) and register your business with a credit reference agency.
It’s also worth getting into the habit of regularly checking the financial status of your customers both before you go into business with them, and keeping an eye on it throughout the duration of the contract. It’s difficult to always know what’s happening in another business so monitoring a customer’s credit score helps to provide you with valuable insight you may not otherwise have.
Experian Business Express is a tool to quickly and easily check any business’ credit history, allowing you to make a well-informed decision about whether to begin, or carry on, working with them. Its monitoring alerts feature also means that you’ll receive updates straight to your inbox, letting you know of any changes to their financial health before it becomes a potential problem for you later down the line.
Out with the old, in with the new
In addition to keeping a close eye on yours and your customers business’ financial health, it’s also important to keep checks on the financial health of your suppliers too, something which can also be done with Experian Business Express. By checking the credit profile of your suppliers, you’ll get an insight into their financial status and stability – vitally important if you’re relying on them to deliver a business-critical service.
Why not use the New Year as an opportunity to review all your current suppliers, making decisions about whether to carry on working with them based on their financial health or if it might be time to look into other suppliers with a more robust credit history.
Getting your business finances in tip top shape for the year ahead needn’t be a daunting task. With these simple tips you’ll be able to banish those winter blues, stave off the winter chill and ultimately put your business in perfect stead for a successful year.
To find out more about how Experian can help your business be the best it can be in 2019, click here.