Danger ahead for many Dorset company owners
Many firms in Dorset are likely to face difficulties in 2009 because a "significant number" of company owners do not understand the dynamics of their own business, according to Bournemouth-based business advisory service Chine Consulting.
David Annable, Owner of Chine Consulting, says:
"2009 will undoubtedly be a tough year and the more you know about your business the less vulnerable you become to sudden shocks. Who can predict the ferocity with which the market can change? Through our contact with SMEs, it has become clear that a significant number of company owners do not understand the dynamics of their own business and that?s a very dangerous position to be in right now."
With the Confederation of British Industry predicting the economic downturn is set to continue for at least 12 months, David Annable highlights five steps that must be taken to help firms prosper in a difficult trading climate.
Spread the risk. Take a long, hard look at your business and the goods and services you offer. Can you easily diversify to help your company weather the storm?
New and returning business. Carefully check out new customers who you haven?t worked for before or customers who suddenly return after a break. Ask yourself why they are not using their existing suppliers, don?t be carried away by the promise of new work. Cash flow. Are your customers paying on time? Late payment may be explainable but may also be a sign of a customer having problems which may result in them not being able to pay you. Take a critical look at the money owing to you and make conservative yet realistic estimations about how much you will actually receive. Use this as a basis for your cash flow forecast.
Review accounts. Do this thoroughly. Does your expenditure exceed your incomings? Are you making a profit or a loss?
Employees. Do you have enough work to keep your staff occupied? Are your staff handbooks and policies up to date? A mismanaged redundancy or simple HR mistake could have significant legal and financial repercussions.
For more information visit www.chineconsulting.co.uk or call 07793 811411.
Press enquiries to:
Gemma Ward
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4a Banks Road, Sandbanks, Poole, Dorset, BH13 7QB
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Notes to editors:
With more than 20 years experience in finance, systems design and implementation, project management, general management and business turnaround, Chine Consulting is able to assist in all stages of a business life cycle.
Working with small and medium sized enterprises (SMEs) Chine Consulting can offer the services of a finance director, marketing manager, human resources supervisor or IT advisor for as much or as little time per month as a company needs.
From start up to wind down and closure, Chine Consulting has advised on both the sale and acquisition of companies. The company can identity opportunities and be an objective sounding-board to assist with the start up or change in direction of a company.
