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By Business Rescue, Jul 26 2017 02:49PM

There are many warning signs to make you realise that you’re losing control of your business. Don’t bury your head in the sand – take heed and take action before it’s too late.

1) Overdue, overdue, overdue

There is no clearer sign than a stream of creditor letters chasing overdue debts landing on your mat. If your cash flow is crippled and your creditors are constantly on your case, then it’s time to reassess your business strategy. This doesn’t mean it’s time to throw in the towel – many successful business have spiralled out of control at some point, only to regain their composure and go on to achieve great things.

2) Please accept my resignation…

If you’re also starting to receive an influx of letters that begin with ‘Please accept my resignation….’ then it may be time to wake up and smell the coffee. If your staff are fearful of their job security and starting to desert what they perceive as a sinking ship, the knock on effect could put yet more strain on your business operations. When it comes to fight or flight in the workplace, those with mortgages, rent to pay, children to support are more likely to take flight; and unfortunately the first to go are likely to be your best and most qualified employees who will find it easiest to find a new position

3) Productivity pitfalls

A concerned workforce is usually an unproductive workforce and when times are tough, that’s the last thing you need. If your employees are spending more time huddled in the kitchen discussing what might happen to your struggling business, you can be sure they’ve already taken their eye off the ball. Once the rumour mill starts, it can be hard to stem the flow.

4) Operational chaos

When you’re fighting fires it’s easy for other areas of your business to tumble into a state of chaos. Lack of processes and procedures result in inefficient operations, poor staff management or clear direction leads to reduced productivity and before you know it your overheads are going through the roof, whilst your income and profit margin are plummeting through the floor.

5) Work / Life Balance – What’s that?

Amongst all the stresses and strains of trying to regain control of your business, your personal life may have taken a back seat. Is your work / life balance a distant memory? Constant worry impacts your home life, leaving little time for quality family time, relaxation or enjoyment. When you’ve reached this point it’s time to stop, pause for thought and investigate tangible ways to turn your business around.

It’s important to remember that you are not alone and you are not the first business owner to face these challenges; many before you have crumbled, only to find the right solution to transform their doom and gloom into a dynamic business model.

Here at Business Rescue, we support businesses through their troubled times offering advice, support and practical solutions to provide a brighter outlook. Our proven successes show the level of expertise and passion we put into each and every company we work with.

Contact us today for a free, no obligation consultation.

By Business Rescue, Jul 12 2017 12:33PM

3 Simple and effective ways to cut your overhead costs

Business Rescue UK Limited

Experienced rescue experts at Business Rescue (UK) Limited

As businesses grow and evolve it is common for overheads to increase and spiral out of control. When you’re busy focusing on keeping on top of your workload, other aspects of your operation can slide. Taking your eye off the ball can lead to costly mistakes that dramatically impact your bottom line, so some simple housekeeping exercises can help to rein in unnecessary costs, bringing your overheads back to a manageable level.

1) Cut the Consumables

Think about the consumables that are used every day in your office or business environment. Considering options such as becoming a paperless office not only saves on paper costs but it will also reduce your printer ink costs and electricity bills too. It will even reduce the amount of time staff spend going to and from the printer, improving productivity. By making staff really think about how and when they use office consumables you can increase awareness when it comes to waste in other areas of your business too.

2) Rent it - Don’t Risk it

There are many benefits to renting your business premises. Renting ties up less business capital than purchasing property, enabling you to invest more money in the growth and expansion of your venture. It provides added flexibility should your business grow or downsize, enabling you to change your location should your business situation demand it. You won’t be caught out with unexpected maintenance costs or repairs that you hadn’t budgeted for – leaving all that stress and worry to the landlord. You are also exposed to less risk should the property market plummet creating a negative equity position for other commercial property owners.

3) Debt Management Solutions

Does it ever feel like an uphill climb to turn things around? Are you faced with creditor and debt pressure that is impacting your overheads? At Business Rescue, our expert commercial debt management team can work with you to bring your business debt back under control. Our informal support programs will help to establish the most cost effective way to manage your debt portfolio, alleviating the sleepless nights and draining anxiety that out of control debt can cause. We are NOT insolvency practitioners; we are here to help your business move forward, shedding the shackles that have previously held you back.

To find out more about our Commercial Debt Management Planning and Debt Solutions, why not contact us to arrange a free of charge, no obligation consultation?

What have you got to lose?

Telephone - 03309 999 247

Email - 999@businessrescueuk.com

By Business Rescue, Sep 29 2015 03:26PM

The banks may not be lending (or at least not in the way they were pre 2008), but that doesn’t mean other financiers aren’t either. When a bank manager suggested to his customer that he should speak to us, it was simply because the client wanted to borrow too high a percentage of the project cost; for the bank to help, more customer contribution was needed.

To see whether this was just an issue with one particular bank, we ran the proposal with a couple of managers from different banks, only for them all to offer the same reason to decline – insufficient customer contribution. None doubted the client’s ability to repay the level of finance requested, even given the conservative figures suggested going forward.

Moving to our contacts book, a number of parties expressed an interest to discuss in detail. Although we expected interest rates from these sources to be a little higher than mainstream banks, the project could stand that. We duly received the Letter of Offer we needed, just under £500,000 over a 15 years term with no penalties for early repayment – client happy !!

We can help link you to these other providers very easily, call us to discuss your requirements.

By Business Rescue, Sep 2 2015 11:45AM

The majority of the business is carried out under the form of JCT contract covering the main contract and as such payment for work and goods carried out during the first week of the first month may not be received until weeks one or two of the third month, some nine or ten weeks later! As a growing MSE business the more contracts won the more working capital was needed. The bank were not prepared to support the business due we believe to its previous history.

Supplier finance allowed the company to put materials on site to start the contract and the invoice discounting allowed them to obtain 85% of the value of the first months work within a few days of the Application being formally approved, easing the cash flow.

Business Rescue is continuing to support the business especially in achieving better payment terms with its commercial customers to reduce the reliance on borrowings and the cost involved.

By Business Rescue, Aug 4 2015 03:44PM

Managing debt in any business, especially a small or new start business is essential for the health of the business and can make the difference between survival or not.

• Budgeting is all, work out a budget – with your financial adviser if needs be, but be strict and work within your budget at all times.

• Calculate a profit and loss account regularly. What have you earned? What did it cost you to earn it? What have you committed to spend? What is left? Don’t spend what you haven’t got!

• Use accounting software, your financial adviser will advise you, or you can use a ‘house’ accounting platform like Excel. Make a spread sheet, enter all of your expenses, all of your income, and anything else that is coming in or going out of your business account/s.

• Keep an eye on costs. Sometimes it is less expensive to ‘buy a service in’, like book keeping for example – the idea may frighten you to death (almost), you are better off spending your time doing what you are good at. It will cost you a few bob but it will be worth it.

• Be tight with your money, spend it wisely when you have to but remember the money you haven’t spent is still yours, the money you have spent (carelessly) is gone for ever.

• Avoid expensive ways of taking money – unless you have to.

• Cash flow, or lack of it, kills businesses quicker than anything. Reward your good payers for paying early or on time. Talk to your slow payers and offer them an inducement to pay earlier. If they are bad payers get rid – they will kill your business!

• Monitor your invoices out so that people do not take too long to pay, and so that your payments out are not attracting interest charges for being late.

• Be careful when dealing with large companies and public authorities, their payment arrangements may be different, some may take up to 3 months to pay, this will affect your cash flow.

If you feel that things are getting out of control, talk to your bank, talk to financial advisers, even family, but do not ignore it will only get worse. Running your own business is great but you need to make money doing it or it will become a nightmare.

As a director of a limited company you have a legal obligation to ensure your company finances are in order. If you allow a company to trade when it’s insolvent and there is no prospect that its financial condition will improve you may be personally at risk.

Additionally, if the company goes into liquidation, administration or administrative receivership, the administrator, receiver or liquidator will review your actions when submitting their report to the Insolvency Service

So if you have any issues surrounding your business debt call us in complete confidence or see our Commercial Debt Management page.

We are here to help!

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