Beat the Recession

Cash is essential to the operation and growth of any business, but during a recession it can be hard to come by. In the coming months, businesses of all sizes will find that as credit dries up, and consumer spending drops, they risk getting caught in a tight spot if they don’t manage their cash flow well.

On this business TV show, some of the world’s leading business consultants give tips and advice for staying liquid and staying afloat during the downturn. The show distils a large pool of advice into four strategies recommended by the contributing business consultants and experts.

The first recommended business strategy is that businesses conduct a thorough analysis of their current financial situation. In particular, to assess what cash reserves are held and where. The next business strategy is to reduce operational expenditure and overheads as much as possible. According to the business consultants who contributed to the business TV show, most businesses should consider outsourcing some functions in order to reduce payroll and other costs.

The third business strategy is to focus on developing systems to recover money that is owed to you. Business owners and retailers need to start “thinking like a banker,” say the business consultants, and consider carefully how credit they offer, and to whom. The final business strategy described in the show is to do whatever it takes to stay liquid.

Even, say the business consultants, if this means selling surplus assets at a discount. The key message in the show that businesses who fail to manage their cash flow and liquidity carefully risk losing everything in the recession, because the margin for error is so small.

Like all the yourBusinessChannel Beat the Recession collaboration shows, viewers who are registered with yourBusinessChannel can submit questions they have on any advice or business strategy covered in this show, to be put back to the business consultants as the basis of future shows.