The current economic data point to the fact
that the coming months will produce difficult challenges for all. As domestic
budgets are ever more squeezed this will impact on businesses across the board.
The latest results from Money lender Wonga illustrate the
strong demand for credit during the downturn.
Net profit more than trebled to £45.8m in 2011, from £12.4m in 2010.
Revenue grew at a similar rate, to £185m.
The number of loans made by the company quadrupled to almost 2.5
million. Bear in mind these are short term loans to individuals and small
companies struggling with cash-flow issues.
This is the
time to conduct a top to tail analysis of your business.
Undoubtedly there are areas which would
benefit from some radical adjustments/ change of direction. The consequence is
not acting now could have very negative effects in the next few months.
Now is the
opportunity to redefine strategy rather than adopting an ostrich "head in
the sand" attitude.
When trying
to explain a disastrous set of accounts to your Shareholders or Bankers it will
be of little comfort to trot out the tired old defence “it seemed like a good
idea at the time”.
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