Beat the downturn in 2009: part five

• Produce regular forecasts - at least monthly (or weekly if things are looking uncertain), and highlight cash flows coming in and out. Our approach is to create a simple integrated model that includes profit and loss information, balance sheet figures and details on the volume of trading through cash flows. By linking together several sets of figures to produce financial summaries you know exactly where you are, how you got there and, importantly, where you are going.

• Your forecasts should look six to 12 months ahead as this will reveal when pinch points could occur, giving you a better chance of finding a solution if you talk to your bank or other investors in good time to arrange a temporary overdraft or other facilities.

• Careful stocktaking and budgeting. Take a regular inventory of your stock and order appropriately so that stock levels are right for current and forecast levels of trade. Remember to keep an eye on what mark-ups you need to apply in order to make sufficient cash sales to meet targets.

• It's also wise to check that not only is all stock within its sell-by-date, but that everything is being used in a timely manner since stock ties up working capital.

• Scrupulous cash management. Keeping up with small or ad-hoc deliveries is difficult, however, it is essential to keep a note of funds going in and out of the business. Bear in mind that if you wish to borrow funds, banks and other lenders will feel more comfortable with - and therefore be more likely to lend to - a pub that has well kept financial information.

• Similarly if you eventually want to sell the business, any prospective buyers will offer a price according to your financial performance, which you will need to clearly demonstrate with financial accounts.

• Check out your business model. If your pub is not attracting enough people, whereas others in the area are, consider why this is so and try to adapt accordingly.

• Are the opening hours appropriate?

• Do you need to make the pub more family-friendly?

• Is evening entertainment relevant to your clientele?

• Are the food and drinks menus suitable? These are just some of the questions we consider with clients - small adjustments can make a valuable difference.

• Seek advice and do it early. If you're already doing these things, and still struggling - ASK FOR HELP. Smith & Williamson, for example, is offering new 'fast track' support for businesses affected by the credit crunch.

• Finally, if you are facing serious difficulty, it may be possible to save the business through a formal or informal arrangement with creditors or landlords. Take advice early.

Tell us how YOU are tackling the crunch. Email news@thepublican.com ​