Monthly Archives: September 2021

Hot Business News Today

5 steps to bolster your business finances

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By Mark Wright on Small Business – Advice and Ideas for UK Small Businesses and SMEs

In recent years, a number of large businesses have gone into administration, and this hasn’t resulted from lack of sales or custom, but rather a lack of control over finances, such as cashflow.

In fact, pre-pandemic, one in seven UK small business owners have been left unable to pay their employees on time due to finance and cashflow problems, while earlier this year 31 per cent of B2C firms reported that they will run out of cash within the next three months.

As we begin to emerge from Covid-19 restrictions, there are a number of key changes business owners can make to improve their business finances, and quickly.

#1 – Calculate your costs

It is vital to know your costs and one of the best cost-saving exercises is to regularly review your suppliers. As the famous 1980s story goes, Robert Crandall, the then head of America Airlines, calculated that if he just removed one olive from every salad served to passengers, no-one would notice and they would generate an annual cost saving of $100,000.

So, as a business owner, ask yourself this question: what is your one olive? We all

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Hot Business News Today

Nearly 17% of small businesses at risk of insolvency

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By Timothy Adler on Small Business – Advice and Ideas for UK Small Businesses and SMEs

Nearly 17 per cent of small and medium-sized businesses in the UK are at risk of insolvency in the next four years as financial support from the Government winds down, says research.

Euler Hermes, the trade credit insurer, has found that Britain’s small businesses are in a more vulnerable situation than their counterparts in France and Germany.

Only 7 per cent of SMEs in Germany are at risk of failure within four years, and 13 per cent in France.

>See also: Swap Bounce Back debt for employee equity, say industry experts

Euler Hermes investigated insolvency risk across 525,000 small businesses across Europe.

The trade credit insurer said that manufacturers and suppliers to the car industry ranked among the most vulnerable, with more than 33 per cent in the sector exposed to the risk of insolvency. About 25 per cent of those in the energy sector and 20 per cent in construction were said to be at risk.

British business failures remained low during the pandemic, thanks to unprecedented Government support, as well as measures to protect companies from insolvency, but distress is expected to rise as the economy reopens, support is

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