The Credit Crunch: A Practical Guide at Grant Thornton
The credit crunch has now spread from Wall Street to Main Street and is squeezing businesses across a wide swath of industries. It seems that each week another major bank failure, economic crisis or government bailout is grabbing headlines. It's hard to know what is happening and why.
In The credit crunch: a practical guide, we provide an explanation of some of the recent major financial events and a brief assessment of how they may affect the typical business. The guide also lays out a 10 actions steps to consider as you manage through this difficult time. With careful planning and foresight, you might even be able to turn conditions to your advantage.
Most of our suggestions are about good business practices:
- Cash is king: If you have cash on your balance sheet, you have a greater degree of flexibility in your decision-making.
- Control costs aggressively: Tough economic conditions require a razor-sharp focus on cost containment at a minimum, and cost cutting where possible.
- Evaluate customers and suppliers: Make sure you understand the financial well-being of your customers and suppliers.
- Educate yourself on tax issues: Know how to reduce liabilities and take advantage of tax credits.
- Reconsider capital investments: Investing in new assets in a downturn can place pressure on cash reserves and contingency funds.
Want to hear more? Download The Credit Crunch: A Practical Guide
You can also read about our recent assembly of an Economic Crisis Team
