Credit and Finance, Growth, Hints and tips, Small Business
4 top tips to help you stay cool under pressure this summer
Posted on by Jo Shaw
Estimated read time: 4 mins
Read our top tips to help protect the financial health of your business.
As the cooler climes of spring start to make way for beautiful sun kissed days filled with endless possibilities, our minds can sometimes drift to thoughts of golden sands and crystal clear waters.
While there’s nothing wrong with taking things easy every now and then, when it comes to your business, it’s important to make sure you don’t rest on your laurels too much or you could end up getting stung further on down the line.
In celebration of the long-awaited arrival of summer, we’ve put together four top tips to help you stay cool under pressure this summer.
1: Freshen up your habits
Summer is often a time to kick back and relax, but this doesn’t mean we should let old habits creep back in. Practices such as paying bills later than the due date or filing annual returns and financial accounts after the deadline can seem harmless, but in reality they can have lasting effects on your business’ credit score, which in turn could impact your ability to secure future credit.
2: Take the right precautions to avoid getting burnt
Running a business health check on your company by using a tool like My Business Profile is a great way to see what factors could be affecting the financial health of your business – before it’s too late. Think of it as business sunscreen.
My Business Profile will give you an understanding of what creditors see when deciding to offer you credit. By looking at your business credit profile, you will be able to see the overall credit score of your business, helping you put plans together to either improve or maintain that score.
3: Rid yourself of stifling relationships
One of the best ways to stay cool through the summer heatwave is to shed some layers, and this can be reflected in your business finances too. A good place to start is by reviewing your list of suppliers and deciding whether or not you want to continue working with them based on their financial status.
It goes without saying that the relationship you have with your suppliers is very important. After all, if they run into financial difficulties and are unable to make good on their promise to supply you their goods or services, this can have a ripple effect on your own customers, and ultimately, have a damaging effect on your business’ own reputation.
By using tools such as Experian Business Express you can assess the financial health of all your suppliers so you can make a well-informed decision about whether to carry on working with them. You can also view the financial status of similar suppliers, giving you insight into whether swapping providers would be beneficial.
4: Keep tabs on your clients to avoid a career thunderstorm
Just as important as the relationships a business has with its suppliers are the relationships it has with its customers.
If you take on a new customer without doing your homework first, sparks can soon fly if they’re unable to pay you or if they regularly make late payments.
To avoid this, it’s important to check the financial status of all your customers using a tool such as Experian Business Express, so you can make a decision about whether to work with them or whether to impose protective measures such as shorter payment due dates.
Experian Business Express also has the ability to alert you whenever any changes happen to the financial status of a customer, allowing you to make quick decisions on your relationship with them and reducing the potential damage caused by bad debt.
If your business is in need of some summer R&R, don’t sweat it, click here to make safer, smarter, better-informed business decisions.