Rick Smith, managing director of Forbes Burton, a company rescue and insolvency specialist says safeguard your business by having multiple suppliers

One of the biggest issues your business can face is suddenly losing a key supplier when they go under.

If you can’t source what you need halfway through a project, you could find yourself in the scenario where you can’t finish what a customer is paying for, and that’ll leave you short on change.

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The easiest way to combat this is by simply having more than one supplier. Having multiple suppliers protects you, your business and your customers.

Where do I start?

You need to be setting time aside to work on your business, instead of in your business.

Bookkeeping can be a long and laborious task, but you’ll be sleeping easier if you know exactly how healthy your accounts are.

By keeping your accounts up-to-date, you’ll know how much time you have to source a new supplier.

Cash flow is a persistent problem for small businesses, manufacturers, wholesalers and sole traders.

Issues with cash flow result in more than half of small businesses closing within their first five years, and it’s an easily avoidable problem.

Take a step back and look at all your options on how you can improve your situation.

Poor cash flow is an issue that needs addressing quickly if you’re going to keep your head above water.

What can I to protect my business?

It’s essential that you have good credit control systems in place to collect any money you’re owed from customers.

If you’re not getting paid for your work, your business won’t survive. It’s really simple, and prioritising the effectiveness and efficiency of these systems is paramount.

It’s critical you have other suppliers at hand.

Ensure that you aren’t solely relying on a single supplier that could make or break your success.

Having a handful of suppliers that stock similar products makes certain that you can continue to trade while one of your suppliers goes bust.

As long as you’re prepared, a supplier going bust shouldn’t affect your business at all.

In a perfect world, having multiple suppliers to fall back on if your most trusted clients suddenly vanish is ideal.

Finally, it sounds simple, but take care of your business and your business will take care of you.

Also read How to protect your business against a supplier going bust.