The passing of one of the most volatile economic years for 50 years and perhaps since 1929 was celebrated as usual with fireworks and partygoers rejoicing and singing auld lang syne.

And it seemed that for a short while the economic trials and tribulations of 2008 had been forgotten.

But then as quickly as the New Year festivities had approached they passed and we woke in 2009 to the same woes and economic uncertainty that we thought we had left behind. It would seem though, that the only certainty for 2009 is that it’s going to be a tough year.

So as we enter 2009 what actions should we be taking to prepare our businesses and ourselves for the year ahead?

December has been a very busy month as we try to shoe horn five weeks of work into just three!

One common theme seems to be the continuing difficulty obtaining finance from the banks for both working capital and investment . . . but are banks just been difficult?

This has been a question I have asked myself as I have tried to negotiate deals for clients and that clients have asked me.

The government announced not so long ago a number of measures and policy changes, all of which were geared towards increasing the general liquidity within the economy. However, whilst they have had some impact, many of our banking institutions do seem to be reluctant to lend to each other and to us. This is reflected by the gap between the Base Rate and the London Inter-bank Offered Rate (LIBOR), which has been at its largest for many years. As banks and other lending institutions slow down their lending to companies liquidity will become a significant issue for businesses. At the same time we have seen instances where credit facilities and loans have been restricted as banks become more selective about those they provide funding to. More recently we have seen examples of financial aid packages that the banks have turned away which may have been approved more readily by banks 18 months or so ago.

Bankers have had a torrid 12 months. The banking landscape has certainly changed in 2007/2008 and will continue to change over the next 12 to 18 months.Many banks have returned to a position where their managers are out in the field talking to customers about their banking requirements.

Making sure that you, as a business owner, are fully aware of the position of the business at any particular point in time is vital. There is though no generic list of information that can be provided as a guide as every business is different in the way it operates and therefore business owners will require different information to asses performance.

One of the main reasons for business failure is lack of cash and general liquidity (the ability to raise cash for working capital purposes). At times where credit, from banks, is in short supply it is vital that business owners plan both the use of available cash within their business and the future cash requirement.

Last night I presented at a Business Link seminar titled "Beat the Crunch". Following the presentation it was clear from the questions asked that there is some concern in amongst SME owners as to how they may be effected by the current economic climate. I was also surprised that some of the business owners were activley looking to grow and were seeking financing for their expansion plans. To help your business survive the credit crunch there are a few things that you can do. Over the next few weeks I will be posting ideas to that may help. Review the businesses health and identify risks

After months of talk and speculation finally a US bank has filed for Chapter 11 bankruptcy, the equivalent of administration in the UK. But will the demise of Lehman Brothers impact upon SME’s?

While it will come as no surprise that the UK’s business community is still feeling the squeeze of the credit crunch, new research from Bibby Financial Services has found that small businesses are keeping Britain’s entrepreneurial spirit alive by driving forward new business and diversifying their product and service offer. Rather than burying their heads in the sand, 37% of owners and managers have undertaken a new business drive, a fifth (23%) have diversified their core product and service offering and a further 29% have started working longer hours, including evenings and weekends, in an effort to stay ahead of the competition and ensure the ongoing success of their business.

Press coverage of the so-called ‘credit crunch’ continues unabated, with more and more bad news hitting the headlines every morning. But how much is it likely to affect the owner-managed or average SME business?