Would you pass the Stress test?

The news late last week that a number of European Banks had failed the stress test comes as a timely reminder that all businesses operating in today’s climate need to have constant and rigorous focus on their commercial exposure.

Against the current competitive background it is very difficult to contemplate turning away business especially from a customer of long standing. Many times however, the best business is that which is left to competitors.

It may well be that turnover suffers when stricter controls are in place over such elements as payment terms and credit limits.

The reward for such fiscal discipline is obvious. Avoiding defaults by customers not only protects the company’s bottom line but also works wonders for the stress in your own life

Are you sitting comfortably?

Running a business in today’s environment is a complex affair – it has been likened to playing 3 D Chess.

Particularly for the owners of SME’s it has never been harder to keep track of the various elements which are buffeting the business.

Now might be an appropriate time to run a check over those areas of the business most likely to cause problems in the coming months.

It is a self evident truth that many a crisis could have been averted by timely intervention. This is where an independent appraisal can identify areas of potential concern but more importantly the ways and means by which to address them.

The question that needs to be answered initially is – am I sitting comfortably?

Looking for a UK presence?

If you are looking to market your product in the UK one of the deterrents may have been your perception of high operating costs.

There is no doubt that to commission and run a UK base can prove costly. The lists of outgoings such as rent, communications, staffing costs can prove rather daunting, particularly in a start up situation where income streams are lagging far behind these charges.

This is where we can assist you, as an established independent company, we have experience of representing overseas organisation in selling product into the UK. In addition to opening up new markets for your products we can also police the logistics and payment of your invoices.

An introduction to our activities can be seen on our web site www.glbconsulting.co.uk or alternatively why not contact me at gordon.blackburn1@btinternet.com to arrange a meeting to discuss how we can assist you

Batten down the hatches

The current financial inputs point to the fact that the recovery in the UK is extremely fragile. We will shortly be entering the “silly season” and over the rest of the summer it is most likely that we find ourselves in somewhat of a limbo situation.

Without question, the real effects of the cut-backs and general downturn in many people’s incomes will be felt most keenly in the final quarter of 2011.

The recent hike in utility charges will really bite from September onwards and a further downturn in consumer confidence appears likely. More and more will the mantra “heating versus eating” be heard.

Running any business against this background will provide challenges and there could not be a more pressing time to address the question of operating costs and the rigorous policing of stocks and Debtors.

If appropriate actions are taken now, Companies should find themselves well positioned to ride out the inevitable storms.

If you’d like to discuss how I can assist you with a plan of action then contact me at gordon.blackburn1@btinternet.com

Time to lift a few stones?

Events of the past week have shown just how vital it is that Senior Management set clear defined operational and reporting procedures.

In many companies the Directors simply do not have the understanding of the mechanics or the day to day activities of the business which they purport to run.

For example I have worked in trading environments where totally unrealistic profit target have been passed from Board level to trading departments. No cognisance having been given to the disproportionate risks which need to be taken to achieve these targets.

Some of the most spectacular financial flame outs have followed a period of ostensibly highly successful trading. In their desire to recognise these “profits” no thought were given as to how they were being made. In such times it would be well to take note of the old adage that is something looks to be too good it usually is!

If your company is bucking the trend in these difficult times it may well be that you are implementing a winning formula.

However history tells us that it is sometimes a prudent course of action to look under a few stones – just in case.

A Spectator always sees more of the game

During my various assignments one observation holds true – whilst there are very few bad businesses, there are many that benefit 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

Is it time to kick start your business?

The pressures on the business sector continue to mount and this is especially true for those running SME’s. The need to achieve operating efficiencies has never been more acute. This is a time when a fresh appraisal of your business could return significant dividends. As an independent business consultant I am confident that I can assist you to ride out these difficult times and build a strong base from which to expand.

 Why not drop me an email at gordon.blackburn1@btinternet.com or alternatively check out my video link which will give an insight into my experience:

http://www.youtube.com/watch?v=IHWrB5BWI