Raines, who runs £200,000-turnover consultancy Your Right Hand FD, says it’s important business owners question everything they’re paying for when the economy weakens. “Look at your cost base. Look at everything with your eyes wide open and say ‘do I really need that’," she says.
“Look at your office space. If you have the flexibility, why not consider moving to a cheaper building? Sometimes it’s not just the rent and rates that you’re paying but extra costs: when you have a whole building, you have to shell out for telephone and air conditioning maintenance, and for heating a building that may be 25 per cent meeting rooms.”
Raines says she’s amazed by the number of clients who don’t manage their cash appropriately, especially given the current climate. “They clam up when I say ‘have you asked this person about payment’,” she says.
“It’s easy for us to get complacent about cost base and forget how much the £100, £200, £500 add up. I’m taking a number of clients through an exercise where I show them the invoices that come through every month and then what goes through their bank statements.”
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