These selected ten tips of “practical advice that works” will help  MDOs* in all SME** businesses to bring their companies through recession in the best possible shape.

1. Treat Cash as King

This is your first priority. Daily & weekly control  are worthwhile over the next year of recession. Lack of cash is why business fails more than any other reason.

2. Monitor your business against a plan

A rough & ready plan is better than none for starters.

Monthly accounts are a good framework for reviewing actual v plan. Be clear what your key performance indicators  (KPIs) are. Use “variances”   from plan to drive your corrective action.

3. Allocate your time so you are working ON your business as well as IN your business.

Beware the pressures of recession which tend to squeeze you further into the detail of business.

4. Choose  experienced external advisers you can trust  & build an ongoing relationship.

Use them as a virtual “board” or “consultancy “ to help you work ON the Business.  The MDO role in an SME is lonely in comparison with the MD in a larger company with a Board of directors & management team. This investment is always worthwhile.

5. Prioritise team work – delegate  to employees to work IN the business which will motivate them.

This is more effective even if you could do everything better yourself. Spend your time with those things they cannot do &  also control your delegation.

6.  Set & monitor realistic objectives with your team

Feed these back through team meetings. Measure results & use KPIs where you can.

7. Use Grant & soft loan assistance.

Your external advisors will help  you access it & immediately reduce their cost to you– there is lots to help SME’s in training, business development & investment. This cost reduction should help justify your moving ahead.

8. Hold regular team meetings

These should be brief, results oriented & with clear purpose.

Use these as a tool of development, delegation & maintaining focus on business objectives.

9. Use Advisors & employees together in teams.

Review but don’t  be involved in everything. Control but don’t dominate. Bring the IN the business and ON the business together where helpful.

10. Review budgets & priorities using your team(s) but avoid an ill considered rush to cut.

Use advisors / team to help you get maximum value for every £ spent. Set & use targets to help match expenditure & results.

*MDO:Managing Director Owner **SME: Small & Medium enterprise

Written by Tony Wilson , MD Proofsouth Ltd,
twilson@proofsouth.co.uk
www.proofsouth.co.uk

Proofsouth is a member of the Liverpool Chamber of Commerce & makes available  to fellow members the Management & Consultancy expertise of Northern Business Advisers all of whom are accredited IIB associates. The IIB motto is “practical advice that works” for independent business.

Tony established Proofsouth in 1997 after a successful career in general & financial management with a number of companies. He is a Chartered Management Acccountant, PRINCE2 Practitioner and business systems / software specialist. He is an  accredited associate of the Institute for Independent Business (IIB) and member of Northern Business Advisers.

More information is available on the Proofsouth website. Proofsouth offers a free 2 hr business audit – just contact Tony on 0845-052-2741 or twilson@proofsouth.co.uk