The ongoing debate about the timing of higher interest rates
will inevitably result in consumers reigning in their spending. Accordingly
many businesses not least the leading supermarkets will face a difficult time.
Without doubt now is the time to tackle potential problem areas
with some effective housekeeping.
One of the first areas for scrutiny is the level of inventory
which the company is carrying. It is imperative to ensure that the best level
of Stock Turn is achieved and the company and that you are not carrying any
obsolete stock. Rather than face a “fire sale” it may well be prudent to
lighten up now with some innovative marketing strategies.
How is the company’s cash position? With the backdrop
surrounding financial institutions and Governments alike, the banks will not
readily provide additional finance- it is an absolute priority to maintain
positive cash-flow and this can only be achieved by keeping debtors under
control.
Those organisations that fail to maintain strict controls will
fail and now is the time to do everything you can to ensure your company
doesn’t become one of the casualties.
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