Wylie & Bisset advises SMEs to review their business strategy and crisis planning
Wylie & Bisset has advised small and medium-sized enterprises (SMEs) who supply to larger businesses to conduct an urgent review of their business strategy and crisis planning in the wake of the collapse of Thomas Cook.
The chartered accountants are urging businesses to conduct such a review in order to minimise the impact of the failure of a large customer’s business on their own company’s financial health.
Suggesting there is a heightened risk of a domino effect throughout the wider travel industry, Wylie & Bisset joint managing partner Donald McKinnon, advises business owners use this as an opportunity to take a long hard look at their own company and those other sectors upon which they are reliant and take steps to avert future ‘big‐name’ collapses affecting their own stability.
Mr McKinnon said: “SME owners should acknowledge which particular clients and customers their business is reliant on and keep up to date with industry reports, company financials and predictions for their future trading expectations. And, where possible, take steps to diversify their customer base into different sectors so they are less reliant on any particular risk.
“For those companies where it is considered that cashflow or profitability may become an issue, SMEs should take action to review their own trading terms with them and ensure their credit control is organised and thorough. And SMEs should review their own cashflow requirements, planning ahead with projections and ensure they have the correct facilities for their business’ financing needs, both working capital and growth finance.”