It is indeed scary times for many small business owners. A colleague of mine last year advised several clients that if they think that administration or worse may be a possibility then they should sit down and develop a plan to position the business with a positive cashflow. If the business must make cuts then “cut once and cut deep”.
I encourage all businesses to develop a plan based around regular internal reporting. Ask the questions: What commitments are there over the next two weeks? What receipts can be counted on over the same period? Does performance match the budget (which means most need to set a budget)? How much risk is the business currently exposed to? What single event can cause a major cashflow crisis? Is there is steady trend towards reduced cashflow and capacity to meet commitments?
Act now but don’t knee jerk – implement systems to make sure the business grows by learning.