Whilst I was listening to the radio this morning one of the pundits was waxing lyrical about the Olympic feel-good factor and its boost to the economy, with more jobs being created, people enjoying themselves and spending more. There may be something to this, but as I have mentioned before, the economic benefits are only likely to be experienced by people and businesses in connection with the games.
So, overall, is everything really that OK? Or, are many still feeling the squeeze? Businesses and individuals have been under increased financial pressure for some time now. The poor state of the economy has had an impact on us all in one way or another. How is your, or your business’s financial health? It may well be fine, but if it’s not, how bad is it and what can be done to sort it out? Is it time to get a financial health check?
What to look out for
Common sense will tell you when something is wrong, for example are you experiencing cash flow issues? Are payments to suppliers being delayed? Are you finding more, and increasingly elaborate, excuses to delay payments to suppliers? Are you spending less time dealing with customers and your orders drying up as a consequence? Are up to your overdraft limit, looking for alternative funding? Is the tax man chasing for late payments? Or have you been on a time to pay arrangement? These are just a few signs of a struggling business.
At this stage many people will hope that the situation will improve of its own accord. But, burying your head in the sand will guarantee that it won’t.
At this stage many people will hope that the situation will improve of its own accord. But, burying your head in the sand will guarantee that it won’t.
What can be done?
Almost all financial problems can be overcome if they are spotted soon and tackled quickly, with the business turned around and put back on an even keel. It may be that a more formal procedure is required, but the business could still be saved and live to fight another day.
The secret is not to allow the problem to fester. Unless it is dealt with properly and swiftly it will only get bigger and much worse.
If you or your business needs a financial health check HJS Recovery are specialists in this sector.
