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?

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?

It seems as though the publics obsession with fly on the wall business documentaries is still there with the start on BBC2 of The Restaurant.As a self confessed nerd who watches all of these programs as I sat down to watch this weeks first two episodes I wondered whether there actually were any serious lessons that could be learnt...

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.

Are businesses prepared for disaster?

As a resident of Market Rasen, the epicentre of the largest UK earthquake in 25 years, Richard Hallsworth, a partner at Nicholsons, is concerned that businesses may be failing to prepare detailed enough disaster plans.

Whilst it would appear that the earthquake, which measure 5.2 on the Richter Scale, did not result in a significant amount of damage to local businesses and the infrastructure that supports them, it will hopefully have made business owners think about the effect such dramatic events could have on their business. Or has any thought of disaster planning, like the shock waves, faded away?

For many business owners the disaster recovery and continuity plan is one of those things that always gets put to the bottom of the pile until it is too late.

Today many businesses rely heavily on IT systems, whether it’s to control manufacturing processes, run telecommunications including collection and sending of emails, and to manage their financial affairs, including paying suppliers and employees online.

So what would happen if there was a critical loss of data or damage to the IT infrastructure of your business? How long would it take to replace hardware and restore data?

Large businesses are fortunate enough to have deep pockets that enable them to research their new products long before they launch them. Unfortunately small business owners don’t have the same resources and therefore simply launch into new ideas without seeing what customers think of them.

Many people returning back to work this week will have made New Year resolutions. But whilst personal goals may have been set, few business owners will have made New Year resolutions for their business. The passing of a new year is an excellent time to take a step back from the day to day running of a business and think about how it can be developed over the forthcoming year yet a business planning myth deters many business owners from reviewing their business.