The person on the spot is baffled, the onlooker sees clear

Based upon my experience across a variety of sectors and businesses one observation holds true – whilst some companies are doomed to fail there are many whose survival and future profitability could be ensured from a fresh input.

 When you are personally involved it is not always easy to change direction or take appropriate remedial action.

This is where an “outsider” can be of assistance – an objective appraisal can very often mean the difference between merely drifting as opposed to decisively moving forward.

Has the UK economy hit the buffers?

The UK may have already slipped back into recession, economic forecaster the Item Club has warned.

The think tank said gross domestic product shrank in the final quarter of last year and would contract again in the current three-month period.

It said that even if the Eurozone could resolve its problems the UK economy would grow by just 0.2% this year.

It also predicted unemployment would rise by a further 300,000 to just below three million people.

Consumption was very badly hit by rising inflation last year, business spending has been paralysed, and of course recruitment has also gone on hold as a result of the euro crisis.

There has rarely been a more pressing time for a root and branch analysis of your business. It is vital to maximise your profits whilst avoiding locking your company into increased overheads

As an independent Consultant I can give your business a full evaluation and provide you with a range of successful sales strategies and cost saving efficiencies.

Triple AAA Rating – the failure rate continues to climb

Every business transaction contains an element of risk, yet at the same time how satisfactory are the mechanics for managing risk?

In recent years we have witnessed just how costly the laissez faire attitude to risk was in many institutions be they large corporations or smaller SME’s.

In the never ending quest for larger profits many of the saner measures of business were abandoned. An analysis of recent disasters from the subprime fiasco in the US through to the Greek Debt debacle all have one common denominator – the architects of these calamities went hurtling over the cliff like lemmings.

Now Europe has received a severe judgement from one ratings agency - Standard and Poor. Nine Eurozone countries have been downgraded.

France lost its much valued AAA rating. It risks now seeing its borrowing costs rise. It needs to raise 290bn Euros ($370bn; £241bn) just to pay off old debts. Almost certainly they will now have to pay more.

A forensic analysis of your company’s current Debtors Book might make for uncomfortable reading but like most unpleasant tasks it should not be ducked. Better to take remedial action such as a write down whilst you are in control of your own destiny rather than have a 3^rd Party appointed to do it for you. 

Sharpening up performance

How do we boost the bottom line? – Without doubt the most hackneyed question in business.

There are 2 obvious solutions, (a) Cut operating costs and (b) Boost Revenue. If you’re the FD you’ll probably aim for the double.

The Sales Director only has one shot in his/her armoury namely increase sales. Sales targets can always be raised but a sense of commercial realism also needs to be applied.

If you are marketing a totally unique product or service the task is easier but for the most part there are many companies offering a similar range of products in a broadly similar price range.

As such for most companies it is about getting back to the basics – ensuring orders are processed efficiently and in a timely fashion. Following up on customer satisfaction, in short providing what in old fashioned terms was called “service”.

Action this day!

Daily we are seeing clear cut evidence that the first quarter of 2012 will be a difficult time for business as Consumers further reign in their spending. Without doubt now is the time to tackle potential problem areas with some effective housekeeping.

One of the first areas for scrutiny is the level of inventory which you are carrying. Make sure you are achieving the best level of Stock Turn and that you are not carrying any obsolete Stock. Rather than face a “fire sale” it may well be prudent to lighten up now with some innovative marketing strategies.

How is your Company’s cash position? With the ominous backdrop surrounding financial institutions and Governments alike, don’t expect the Banks to readily provide additional finance- it is an absolute priority to maintain positive cash-flow and this can only be achieved by keeping Debtors under control.

Undoubtedly, the commercial casualty rate will climb in the early weeks of 2012 – now is the time to do everything you can to ensure that your Company doesn’t become part of these statistics

Don't get blind sided

From a company Manager’s perspective the recent market gyrations and latest pronouncements from politicians and economists alike have done little to calm nerves and now more than ever is the time for good housekeeping and firm controls. Constant monitoring of counter party risk is the order of the day combined with disciplined inventory control.

Just because a customer has always being reliable in the past is unfortunately no guide as to future performance. Look out for tell tale signs such as unusual ordering patterns, delays in payments etc.

The coming months will continue to test but undoubtedly there will also be opportunities for those placed to take advantage of less efficiently organised companies.

The trick is making sure that when the dust eventually settles that your company emerges in a stronger position.

Sales & Marketing Services for the UK

The UK offers a very attractive market for companies wishing to export their products. Counter party risk is identifiable and can be successfully managed.

However it can also be an expensive market in which to operate. This is where we can assist you in achieving a cost effective mechanism by which you can trade on an efficient and cost effective basis.

By engaging the services of GLB Consulting Ltd (www.glbconsulting.co.uk) you can effectively market product through our intermediary and have the presence in the UK without the accompanying cost of establishing and maintaining a UK Office. Essentially we become not only your marketing channel but also your “ears and eyes”.

As insight into our activities is available via the following link:

www.youtube.com/user/MrGblackburn