# Preparing for the unexpected can help SMEs prosper Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2018-03-22 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Top Tips for Reinforcing Your Small Business in Uncertain Times Meta Description: Discover expert advice on cash management, budgeting, data utilisation, marketplace analysis, diversification, and early bank communication to navigate Tags: featured Tag URLs: featured (https://financedigest.com/tag/featured) URL: https://financedigest.com/preparing-for-the-unexpected-can-help-smes-prosperhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/ian-rand-1736842906863-compressed.jpg) **By Ian Rand,** Chief Executive, Barclays Business Banking There’s no escaping that the small business environment has felt challenging so far this year. ![Ian Rand, Chief Executive, Barclays Business Banking](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/ian-rand-1736842906863-compressed.jpg) Ian Rand, Chief Executive, Barclays Business Banking There has been weak consumer confidence in clothing and restaurants on the high street, unfortunate SMEs have been put under pressure by Carillion’s collapse, and our own recent survey of smaller companies showed concerns about inflation – which can increase costs for a business, [hitting profits](https://www.financedigest.com/australias-westpac-flags-950-million-profit-hit-led-by-energy-exit-costs.html "Australia’s Westpac flags 0 million profit hit, led by energy exit costs"). As a banker for a million UK SMEs, I spend a lot of time talking to small [business owners](https://www.financedigest.com/carbon-zero-what-it-means-for-business-owners.html "Carbon Zero: What it Means for Business Owners") about their plans and how they are considering changes in their marketplace. Some firms are full of optimism while others are characterised by caution, though all successful [entrepreneurs share](https://www.financedigest.com/entrepreneur-investor-dale-w-wood-shares-how-he-is-using-his-funds-to-create-change.html "Entrepreneur & Investor Dale W Wood Shares How He Is Using His Funds to Create Change") a remarkable sense of determination. However, one particular trait that distinguishes the firms that tend to succeed over the long term is their thinking about resilience, and what they will do if things don’t go to plan. [Businesses encounter problems](https://www.financedigest.com/no-collateral-no-problem-here-is-what-you-need-to-know-to-secure-a-business-loan.html "No Collateral, No Problem: Here is What You Need to Know to Secure a Business Loan") from time to time, and being prepared for the unexpected makes a real difference. Yet worryingly, figures from the [government suggest many small business](https://www.financedigest.com/government-assisted-financing-schemes-for-small-businesses.html "Government Assisted Financing Schemes For Small Businesses") owners often leave things late. [Nearly half](https://www.financedigest.com/meta-to-take-nearly-half-of-sales-made-by-its-metaverse-creators-as-fees.html "Meta to take nearly half of sales made by its metaverse creators as fees") apply for funding within the very week that they need the cash, and many leave it to just two days before. That is why we encourage business owners to try to think further ahead, even amid the daily pressures of [running a company](https://www.financedigest.com/elon-musk-who-runs-four-other-companies-will-now-be-twitter-ceo.html "Elon Musk, who runs four other companies, will now be Twitter CEO"). We have seen this make a difference time and again, and with that in mind, here are some top tips for reinforcing a small company: - **Cash is king** – manage it carefully and have a detailed 13-week [forecast updated](https://www.financedigest.com/blood-thawing-systems-market-analysis-growth-opportunities-future-demand-and-leading-players-updates-by-forecast-2030.html "Blood Thawing Systems Market Analysis, Growth Opportunities, Future Demand and Leading Players Updates by Forecast 2030") weekly. Be in control of the financial performance and have regular [management information showing how your business](https://www.financedigest.com/intelligent-receivables-management-why-its-a-businesss-greatest-ally.html "Intelligent Receivables Management: Why it’s a business’s greatest ally") is performing. - **Set a budget** – do this at the start of each financial [year](https://www.financedigest.com/is-2022-the-year-green-finance-incorporates-climate-risk.html "Is 2022 the year green finance incorporates climate risk?") and monitor performance against it regularly. If you start diverging from it, understand why and use any valuable insights. - **Put data to work** – digging into your data can unlock a wealth of new opportunity. Today, apps can do much of the [hard work](https://www.financedigest.com/how-does-hard-money-lending-work.html "How Does Hard Money Lending Work?") for you, and put information at your fingertips. - **Examine changes in your marketplace** – assess whether it’s just a blip or a seismic shift, and have a [plan for adapting your business](https://www.financedigest.com/hyperspectral-imaging-system-market-know-latest-trends-forecast-for-long-term-business-planning-up-to-2026.html "Hyperspectral Imaging System Market – Know Latest Trends & Forecast for Long-term Business Planning up to 2026") if needed. - **Consider diversifying** – introducing new [revenue streams is a great way to weather difficult periods](https://www.financedigest.com/automotive-condenser-market-to-witness-rise-in-revenues-during-the-period-2020-2030.html "Automotive Condenser Market to Witness Rise in Revenues During the Period 2020 – 2030"). Examples include newsagents signing up to parcel-receiving services, coffee shops becoming cyclist-friendly, or restaurants partnering with [delivery services to increase the amount of food](https://www.financedigest.com/online-food-delivery-services-market-will-reach-a-valuation-of-over-us-4212-6-mn-towards-2029-end-fmi.html "Online Food Delivery Services Market will Reach a Valuation of over US$ 4,212.6 Mn towards 2029-end: FMI") they sell. - **Talk to your bank early on** – you don’t need to [face financial challenges](https://www.financedigest.com/how-to-overcome-the-challenges-faced-by-women-in-business-4.html "How to overcome the challenges faced by women in business") alone. A good business banker will understand your [industry and local market](https://www.financedigest.com/nitrate-free-bacon-market-industry-research-segmentation-key-players-analysis-and-forecast-to-2029.html "Nitrate-Free Bacon Market Industry Research, Segmentation, Key Players Analysis and Forecast to 2029"), and understand your business model. [Managing a firm through choppy waters can require additional skills](https://www.financedigest.com/fine-tuning-your-money-management-skills-today.html "Fine-tuning your money management skills today") and experience. In the last few weeks we’ve spoken to thousands of [small businesses](https://www.financedigest.com/the-small-businesss-guide-to-getting-started-in-digital-advertising.html "The Small Business’s Guide to Getting Started in Digital Advertising") that worked with Carillion. Thankfully, the overwhelming [majority report](https://www.financedigest.com/bone-grafts-and-substitutes-market-overview-highlighting-major-drivers-growth-and-demand-report-2018-2026.html "Bone Grafts and Substitutes Market Overview Highlighting Major Drivers, Growth and Demand Report 2018 – 2026") that they are OK for now, and we’ve been able to help several in need with new lending. Early conversations are key. Ultimately, we exist to help [businesses grow](https://www.financedigest.com/should-you-take-out-a-personal-loan-to-start-or-grow-your-business.html "Should You Take Out a Personal Loan to Start or Grow Your Business?") for the long term. Small business owners need a bank that will be on their side through thick and thin. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---