There are many ways you can avoid Insolvency. Here are just a few pointers to help your business stay on top of its financial status.
- Monitor your customers
The key to success in business is choosing the right target audience. Correctly assessing and then meeting their needs means you will stay in the market for more extended periods of time and with more stability.
- Manage your risks
There can be different risks depending on your business sector. Performing routine risk assessments is key to keeping your risks under control. Protecting your intellectual property, making sure you have the right insurance cover, paying off bad debts, etc. All of this can contribute to the risks of your business.
- Increase your flexibility
Mitigate your costs by building in flexibility to the business. Allow employees to work from home, offer bonuses to incentivise employees, etc. All of which can help your business to survive the unexpected.
- Build your working capital
Make sure the business is retaining enough capital to cover any shortfalls. Put profits back into the company, work out a cash flow forecast and strategise a plan for the future.