Financial awareness key coming out of a recession

Coming out of a recession is a financially risky time for many SME’s; according to UKBA (UK Business Advisors) who are currently helping many companies struggling with finances. Signs of the end of the recession can actually increase company financial pressures. Orders can increase, but often in lower quantities (for the same sale price) with shorter lead times demanded. Supply chains have often emptied out producing shortages. Companies may need to increase people and other resources having cut back during the downturn. All of these are likely to increase costs, and just as importantly, negatively affect cash flow.

Compounding the problems is tighter credit from the banks and suppliers demanding quicker payments.

They key advice from UKBA is not to ignore the situation, and if necessary get external specialist advice. Consider all the options before committing more of your own cash or borrowings. Borrow and use other people’s money when possible, but do it wisely. Look inside your own business for resources. And ultimately if it really is game over, don’t despair, get help, deal with it, and get on with your life.

Ralph Myers, a financial specialist within UKBA advises, “Historically, coming out of recession is very difficult for companies. Recognising the situation and planning a way through, is one of the key factors that divides those that make it successfully to a brighter future and those that don’t. Do ask for expert help, it will cost a little, but can make all the difference”.

For full details visit the UKBA website www.ukba.co.uk or contact Ralph Myers at UKBA on 0333 444 8522 or Linda Eziquiel on 0771 9439 229.

UKBA supports “buyer decides” principal for business advice

UK Business Advisors (UKBA) believe that, in most cases, the Managing Director is best equipped to decide what is best for their business. The role of the advisor is to offer guidance and support to back the MD’s judgement.

The UKBA network considers the Business Link website as an excellent source of knowledge which should be retained centrally, along with an appropriate call centre. However the UKBA believes the actual delivery of business advice is too individual and patchy to be delivered centrally and strongly supports the government’s initiative to localise business support.

According to the UKBA, the role of government should be to set the strategic framework, not to deliver it themselves. It would be far better to use advisors who can demonstrate real ‘hands on’ experience in business. The UKBA suggests that the government should set out the accreditation framework for the delivery of business advisors, and empower experienced business advisors to help the UK’s business grow.

UKBA believes that the MD of an SME is best equipped to decide what is best for their business. If an MD truly values the help and advice then they should be prepared to pay some contribution to it. This principle puts pressure on the advisor to provide high quality advice that really helps the businesses. If the advisor knows that they will only get paid if they add value, the advice dramatically improves.

UKBA suggests that the government should help by offering a government subsidy of say 25% to encourage business support and advice.

Brian Dash, chair of UKBA said “Trusting the judgement of MD’s and using the expert advisors that are available to SME’s will be the best route to achieving the government target of stimulating a best in class competitive economy.”

For full details visit the UKBA website www.ukba.co.uk or contact Brian Dash at UKBA on 0333 444 8522