Bibby Financial Services is urging owners and managers to carry out an MOT on their businesses by checking 10 key points that will aid the healthy running of their firms.
David Robertson, chief executive of Bibby Financial Services, believes that by making these checks small businesses can make significant savings in both time and money.
ìEach year you have to make sure your car is fit for the road with an MOT, surely your business requires similar treatment with a thorough annual check,î said David Robertson.
The Bibby Financial Services 10-point MOT check:
Planning ahead ñ the business plan is an essential tool for success, incorporating a set of targets and objectives, but many companies do not review theirs as regularly as they should. As your business develops so should your plan ñ so ensure it is reviewed and updated regularly
Credit checks ñ 44%* of small businesses are reported not to be checking customersí creditworthiness before automatically extending their limits. This should always be checked to avoid future problems but it also pays to be aware of the tell-tale danger signs such as regular late payment of invoices
Reviewing suppliers ñ suppliers should be reviewed on a regular basis to ensure the company is consistently getting best value. By negotiating longer credit terms and volume discounts you could have more spare cash to reinvest in your business
Finance ñ owners and managers should ask themselves if their current finance package is providing their business with the level of funding that it requires now and in the future. If not, then now may be the time to review and consider the alternatives
Insurance ñ it is vital that companies check they have adequate insurance cover to meet all their needs and this should include premises and contents insurance, but by law owners and managers must also have Employersí Liability insurance to cover any compensation claims
Software solutions ñ check you have the sufficient number of software licences and that they are up-to-date. Business owners and managers should also ensure they have an IT/software policy in place and that it is communicated to all employees
Check legislation ñ make sure your company complies with all relevant business legislation. There are many regulations that affect businesses including the Health and Safety at Work etc Act 1974, the Disability Discrimination Act, the Data Protection Act 1998 and the Enterprise Act 2002. If you not certain which legislation impacts on your firm, you should seek professional advice
Address the stress ñ within the workplace stress can cause a fall in productivity, increased sickness absence and poor morale. Therefore checking work levels and finding ways to reduce stress could pay dividends in terms of the well being of both your employees and your business.
HR matters ñ handling HR well can make a big difference to a companyís overall operation. Ensuring new employees are given a written contract within two months of employment is a must, as is informing staff in writing of the main terms and conditions of their employment and any changes to them. And, on the recruitment front it is important to take references before hiring a new member of staff to check they are properly equipped for the role in question
Marketing your business ñ successfully marketing your company is crucial as you may well have best of breed products or services, but if no one knows about them then your business will no doubt struggle. Start by identifying your potential customers and then work out a strategy for communicating with them efficiently and cost effectively
Keep your company running smoothly ñ MOT your business now
Bibby Financial Services is urging owners and managers to carry out an MOT on their businesses by checking 10 key points that will aid the healthy running of their firms.
