How to protect your business in a recession

Here are proactive steps you can take as a business owner to safeguard your business during a recession. In this post your we explore some valuable strategies and insights to help protect your business during a recession and how our Business Lawyers offer essential assistance.

Structure your business for resilience

How your business is set up is the first area you should review. The structure you ran with when you first established your business may not be the best option for you now. A company’s legal structure needs to be both robust and adaptable, and if it isn’t, the business is built on unstable foundations and open to creditor claims.

How our Christchurch Business Lawyers can help

Together we’ll explore the most suitable legal entity for your business. Changing legal entity can be a way to benefit from liability protection and carry tax advantages. Consulting with a law firm helps to navigate the complexities of business structures and select the best business structure for your unique circumstances.

Cashflow

Successful business owners needs to have a strong understanding on their cashflow and their business’ financial position. One way to increase your cashflow is by having terms and conditions of trade with your clients. This document will outline the work you do for them, what your responsibilities are, your fee, fee enforcement provision and disputes resolution options.

How our Christchurch Business Lawyers can help

Our experienced Christchurch Business Lawyers can help by drafting bespoke terms and conditions of trade. Bespoke terms can reduce the chances of any fee disputes and other disputes further down the track.

Review the commercial lease

Commercial leases typically represent a significant portion of a business’ expenditure, so during a recession and when the potential for revenue to be negatively impacted. It’s crucial to review and renegotiate commercial lease terms to minimise costs to regain financial stability. 

How a Business Property Lawyer can help

By carefully examining the terms of your commercial property lease, a Business Property Lawyer identifies the opportunities available to you for renegotiation or lease restructuring while ensuring you remain compliant to legal obligations.  

Contract review and negotiation

Reviewing and renegotiating existing contracts with suppliers, vendors, and clients can be a strategic move during a recession so the contracts better align with your financial goals and limitations. For example, this can include revising payment terms, debt recovery and credit control procedures or modifying delivery schedules.

How a Contract Lawyer can help

A Contract Lawyer analyses the existing contracts the business is bound by to ensure the terms and conditions work to your advantage while maintaining the essential working relationships.

Contact us today for a free, confidential no-obligation chat about how we can help your business. Click here or call 03 379 1740.