Small business support - where to turn in the credit crunch
Are you sweating over your accounts, chasing late payments from customers and on the brink of making staff redundancies? For owner-managers of SMEs, the stress and responsibility of navigating your way through an economic slump can be enormous. When the buck stops with you, it's easy to feel isolated; even the brightest of MDs can sink into denial or become so overwhelmed that it's hard to see how to start to get back on track.
But bleak as your situation may appear, help is at hand for both start-ups and established companies that may provide a light at the end of the credit crunch tunnel.
Your first stop should be Business Link, a free Government-backed business advice and support service. Its services are available online and via business advisors, who provide personal, confidential consultations from local bases throughout the UK. This support and consultation service covers all aspects of business management from tax matters to cashflow, with essential guides for managing finances in the economic downturn, redundancy management and advice on how to get funding in order to keep businesses afloat.
Some 10,000 firms have used Business Link's Business Health Check service since it launched in October 2008 - but according to business advisor John Grange some firms are still unaware that such services exist.
"We have a responsibility to make more businesses aware of what we can offer and we want people to take advantage of our services. We have teams in every county in England and we urge SMEs to contact us before they reach the brink."
Taking preventative action is, as Grange explains, key to maintaining solvency and security.
"If you're having problems you've got to face up to the situation immediately. Doing nothing is not the answer as avoiding issues such as letters from the tax office or unpaid bills will only make things worse. Open your eyes and assess every aspect of your business in order to re-take control. Explore your options - could you, for example, come to some informal arrangement with creditors? Are you managing your cashflow efficiently? Facing your situation in this way stimulates the brain to come up with corrective actions to hold on to your cash and stop wasting money. Our advisors can help you assess your situation, run a health check on your business and develop a viable plan."
The message from Business Link couldn't be clearer: acknowledge that you need help - and ask for it.
Advisory services
Business Link provides a two-fold service for businesses in England - online services including tools to run a health check on your business and guides that can help you manage your debt, and face-to-face consultations in the privacy of their own offices. To arrange a meeting with a Business Link advisor, call 0845 600 9006. Advisors will work personally with SMEs that employ six members of staff or more until the process is complete. Start-ups and smaller outfits can get advice over the phone and via the website.
In Scotland and Northern Ireland, Business Link also works in partnership with Business Gateway and the Highlands and Islands Enterprise (Scotland) and Invest Northern Ireland.
Other support services
The National Federation of Enterprise Agencies is a network of independent, not-for-profit local agencies which represents SMEs across many business sectors. In particular, the network targets pre-start, start-up and micro-businesses, helping to develop their ability to build and sustain themselves. If you run your own business from home, try Enterprise Nation, which offers a free online advisory service for homeworkers, and provides forums, guides and networking opportunities between business owners.
Additionally, most borough councils in England have business development and enterprise teams that offer group and one-to-one advisory workshops and support, often in association with the organisations listed above.
On loans: a helping hand
As part of its Solutions for Business scheme, the Government has introduced a new package of financial measures to support businesses during the current recession. If you have short-term working capital constraints, or are looking to invest to grow your business, these provisions may help you. Use the tool at Business Link to find out what's available and whether your business could benefit.
Employment matters
Whatever the current outlook, continued investment in staff training is critical to increasing your company's competitiveness. The Learning and Skills Council (LSC) - runs Train to Gain, an independent advice service and source of funding for skills development.
If you're considering restructuring your business in order to cut costs, the implications can be complex and far-reaching. For clear advice on all the issues, see Business Link's restructuring guide.
Stress management
Long-term anxiety and stress can take its toll on your health - and when it comes to redundancies, deciding who you need to let go can be one of the most stressful decisions you ever have to face in business. Many business insurance providers offer stress management and counselling as standard - check with your provider for details.
Insolvency and legal advice
Don't ignore letters from creditors or HMRC, as the situation can quickly escalate. Act early to negotiate with those your business owes money to. If you have, for any reason, become embroiled in a legal action (such as being hit with a winding-up order), you must get professional legal advice immediately.
- FACE THE PROBLEM: Sinking into denial is not the answer - ignoring problems with customers, creditors or the tax man will only make your situation worse.
- TAKE CONTROL: Take an honest look at every aspect of your business to take stock of any overspending and inefficiencies. If you don't take control of your business, someone else will.
- TAKE CORRECTIVE ACTION: If you can come up with a strategy in the early stages of difficulties with cashflow or creditors, it's more likely to work.
- ASK FOR HELP: To help you analyse your business's strengths and weaknesses and come up with a viable strategy for getting back on track, contact a Business Link Advisor. Professional help is available to you, and it's free of charge.
- INNOVATION NOT STAGNATION: While riding out the recession, keep your business ticking over, keep control AND keep an eye out for new opportunities - they're still out there.
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