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A
New Beginning?
by Jeremy Priestley, Managing Partner
Without seeming to be too
political, I cannot help but feel that the Conservatives did well
to avoid winning the
recent election – if only to see Gordon Brown, heavily tipped
to take over from Tony Blair one of these days, inherit 'his own
economy'. But, that is unlikely to be good news for businesses much
less the tax paying public.
Warning signs continue to appear – the number of financially
troubled businesses is on the increase - SME's are taking longer to
pay their debts than 6 months ago- and in a less than vibrant economy
are struggling with rising prices – all of which could lead to
that unhappy phenomenon of ‘stagflation’, when prices rise
and sales fall and which some will remember from the 1970s. Then the
economy was bailed out by rising house prices, but that seems an unlikely
prospect this time around.
The increased numbers of businesses with significant financial problems
is particularly worrying - there are increased numbers of businesses
reporting losses , with CCJs against them, making later payments to
their creditors and late filing of their audited accounts. Their eventual
demise will have an important effect on the earning capacity of UK
plc.
Most businesses are taking longer to settle debts outstanding - putting
pressure on the system and making it difficult for new enterprises
to get going.
The downturn in personal spending is well reported
and already biting in the High Street as consumers juggle credit card
payments to put
off the day of reckoning. This problem will inevitably move to the
leisure industries that have enjoyed a good run. It shouldn’t
take a genius to see the problems facing night clubs who now face not
only the economic uncertainty amongst their clientele, but also from
the influx of new bars and venues in town centres gearing up to the
24 hour licensing laws.
In short, its time for all business to get back to basics about their
finances and to revisit their marketing activity. Your accountant can
certainly help you with this activity; my advice to all business is
to get on with it now!
If your business is experiencing the early signs of financial problems
and you would like some early advise speak to Jeremy Priestley on 0114
2755033.
17.5.2005
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