Cash flow is the first line of defence
Profit matters, but cash flow keeps the lights on. During a crisis, customers may pay later while suppliers and lenders demand payment sooner. A rolling thirteen-week cash-flow forecast helps you see pressure points before they become crises.
Update it weekly with actual receipts and payments. Identify the largest recurring outflows and ask whether each one is essential, deferrable or negotiable.
Talk to suppliers and lenders early
If you expect difficulty meeting a payment, contact the other party before the due date. Many suppliers prefer a revised schedule to a defaulted invoice. Banks and credit unions in Ireland often have forbearance or restructuring options, but they are harder to access once an account is already in arrears.
Be transparent about what you can commit to and put any revised agreement in writing.
Review your cost base
Rising energy, wage and financing costs affect almost every Irish SME. Review:
- Energy contracts and efficiency opportunities.
- Stock levels: avoid overstocking cash in slow-moving inventory.
- Subscriptions, software licences and underused services.
- Staffing mix: consider training, automation or flexible hours before redundancies.
Understand available supports
Irish enterprise agencies such as Enterprise Ireland, the Local Enterprise Offices and Údarás na Gaeltachta offer advice, mentoring and sometimes grants or soft loans. Revenue Commissioners also publish guidance on tax payment arrangements for businesses in temporary difficulty.
Supports change with budgets. The best way to verify current options is through the official websites of these organisations rather than third-party intermediaries.
Scenario planning beats single forecasts
Do not rely on one optimistic plan. Build three scenarios: baseline, downside and severe downside. For each, decide in advance what levers you would pull: reducing discretionary spend, deferring investment, renegotiating terms or adjusting headcount.
Having decisions pre-approved by the owner or board makes action faster and calmer when conditions change.
Pricing with honesty and empathy
If you must raise prices, explain why clearly. Customers are more accepting of increases when they understand they are driven by genuine cost pressures rather than opportunism. Be ready to offer lower-cost alternatives where possible.