Further shocking news from the financial sector –but what can we do?

What a scary news day! Lehman Brothers, Merrill Lynch, AIG – who’ll be next? And what can we do about any of this anyway?

Well, individually, we probably couldn’t have done a great deal to avert these particular situations, but how we respond to them is in our control. So let’s draw some positives by at least learning from the events of recent days.

1. On a practical note, the ripples from these stateside events will reach our shores pretty quickly. So, if you thought our banks’ lending criteria were tight before, be prepared for them to draw the belts in another couple of notches. If you need finance, act now – and provide robust justification for your requirement.

2. Remember that market confidence is key. As Tony Lomas from PWC said today: “If no-one wants to trade with you…there’s no way back.” Never under-estimate the importance of customer satisfaction and your reputation in the marketplace.

3. Whilst belts are undoubtedly being tightened, trading will not cease altogether. People and businesses still need to spend on goods and services – they will just be more selective about which they buy. So, understand why people buy from you and ensure that you offer consistently great value.

4. Be positive and confident in the future. Be open to opportunities and solutions to problems that might be facing you at the moment. This too will pass – make sure you come out the other end the stronger for it!