At Andrew Wright & Co. we can provide businesses in the Wakefield area with advice and support on a wide range of business issues. This article suggests 7 ways to protect your business against a downturn.

Small and medium-sized businesses are particularly vulnerable to economic downturns. But all too often we see companies going under that could have stayed afloat if they had taken a few elementary precautions at the right time.

The right time to protect your business against a downturn is when it is relatively strong and you still have room to manoeuvre.

Here are seven steps you should consider taking:

  1. Don't rely on just one or two main accounts for the bulk of your revenue. Spread the risk by expanding your customer/client base.
  2. Maintain close communication with your bank and share your successes and failures with them.
  3. Reduce the debtor days on as many accounts as possible and accustom your customers to paying promptly.
  4. If you have to reduce spending, do so in non-core areas of the business.
  5. Examine ways to carry less stock without adversely affecting your core performance
  6. Don't lay off staff unless you really have to, especially those who provide ideas and inspiration. Use any downturn as an opportunity for key staff to develop new skills and coach newer members.
  7. The marketing budget is often the first casualty in a recession, but smart businesses continue to market through a downturn and position themselves to take full advantage of the upturn as soon as it starts.

If you are in the Wakefield area and are looking for support and help from experienced accountants and business advisers, contact Andrew Wright & Co..

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Andrew Wright & Co., 10 Cliff Parade, Wakefield, West Yorkshire WF1 2TA


In the UK the term accountant is not protected by law, therefore anyone can call themselves an accountant. Being an ACCA member firm means that you can have confidence that we are qualified to handle your finances, help your business grow and that we are regulated by the leading accountancy body in the world. The ACCA Qualification provides a wide-ranging skill-set, which means we are trained to provide both strategic and operational input and adapt quickly to your changing management accounting needs.

Unqualified persons who have trained for book-keeping or tax only simply aren't able to provide these other services as their skillset is too narrow.

Andrew Wright & Co is a trading style of Andrew Wright & Co Limited. Registered in England and Wales: 10641250. Registered office: 10 Cliff Parade, Wakefield, West Yorkshire, United Kingdom, WF1 2TA.