The news this morning that Carillion is going into Liquidation will mean that suppliers will be facing some very tough decisions. Depending upon a supplier’s exposure to working with Carillion there are three steps to take, regardless of what the government does to keep the wheels on the work being undertaken.
- Make sure your records are up to date so that your claim can be processed properly by the Official Receiver and any instructions to continue working, properly contracted.
- Tighten up on cash collection of your other clients – there is likely to be a hole in your cash
- Take steps to match your outgoings to your expected income without the Carillion work. This will be the tough one, as it is may well involve redundancies.
Taking decisive action to cut costs is a tough call for SME’s, they may not have done it before. It is however the only way to be sure of keeping a business viable. It’s a case of being cruel to be kind (for those who remain). However, it will be better than not taking action.
Should you need help making the drastic steps, I have experience of doing so and am willing to help.
Tel 07973 423844