Reasons Why a Business May Fail

There are many reasons why a business project or a business in general might fail; this can either be one major factor or a culmination of a few.

Below are some examples:

• Not finding out why consumers aren’t buying from you

Perhaps your marketing message or call to action is not clear enough

Your website/ advert may not be easy to find

It may be unclear how to place an order with you

• Be aware of your corner of the market

Know who your customers are and what they want and need and stick to that

• You may not have received the right advice, or enough of it

You shouldn’t base company decisions on the first piece of advice you get, it could be a very blinkered view or one based solely on opinion and not fact, who’s to say they are even correct?

Try to obtain advice from a number of different sources.

• You may not know how to break down your ideas and goals into small and achievable targets

You must set daily, weekly and monthly goals and ensure you keep abreast of them

• Ensure you focus on one thing at a time

Don’t bite off more than you can chew

Prioritise and work systematically and try not to get too ahead of yourself, multi-tasking and taking on too many projects at once

If you are complying with all of the above and your business is still in a bad way financially then it may be time to talk to Beer & Young about the options available to you. Never wait until it is too late. Call Beer & Young today!

Businesses struggling to pay quarterly rent charges

The majority of companies must pay 3 months’ rent in advance for commercial properties.

Due to poor economic conditions and a rise in sales on the internet, more than 21,000 jobs have been lost on high streets since the beginning of the year. In terms of likelihood of company failures within the next annum the retail sector is looking at expected figures of 26%.

Some business owners are trying to agree new lease terms or arrange to pay monthly instead of quarterly; however this decision will be made by each landlord individually. Some businesses have to adapt their business just to survive.

If the current economic climate has hit your company hard, or you are struggling financially, speak to Beer & Young. They may be able to help you with funding in the form of a business angel.

Top Ten Reasons why your SME may be struggling with cash flow

Directors of SME’s all over the UK have recently been questioned for a survey to highlight the cause of the largest cash flow problems within their company.

Below is a list of the top ten:

·         Late customer payments

·         Overdrafts being frozen by banks

·         Unexpected tax bills

·         Requirement for new IT equipment and/ or machinery

·         Delayed insurance pay-outs

·         Slow decisions by banks for funding

·         Slow invoicing

·         Suppliers and/ or staff contracted bonuses

·         Redundancy costs

·         Legal bills

Many companies are unable to distinguish and address the threats before they turn into problems. Due to the state of the current economy, it is harder for businesses to come back from difficult financial times and more and more companies are struggling. Due to a lack of funds, many directors are focussing on just surviving, rather than looking at ways to grow the business.  If your company is struggling financially, contact Beer & Young to discuss the options available to you. Help may just be at hand!

Top 10 Tips for Investing

·         Invest in the sectors that you understand/ have experience in

·         Research the company and the company directors before investing

·         Determine what you want out of the deal, short and long term

·         Decide what you can bring to the table to support the business

·         Work out how much time you have available and what the company requires of you

·         Don’t invest just because the deal sounds good

·         Know from the beginning when to cut your losses

·         If it doesn’t feel right, don’t do it

·         Follow investors who make money

·         Build a network of quality investors who might share deals with you

If you are looking for a new investment opportunity contact Beer & Young to discuss signing up to our registered investors list to receive regular updates on the investment opportunities we have available.

Almost half of SME owners have thought about selling up in the last 5 years

A recent report shows that 46 present of small business owners have seriously considered selling up or downsizing their business within the last 5 years. It also states that when thinking about the future, more especially the forthcoming 5 years 21 percent revealed they are likely to either close the business down or sell their shares in their company and 26 percent say they are likely to exit. 47 percent of SME owners who used a loan to start up their business say that they would be unlikely to start the same business in the current market; this number lessens to 40 percent of business owners who started up their company without funding.

With the current climate being the way it is, times are hard for SME owners. If your company is struggling financially, contact Beer & Young for some free advice on private investment.

New Bank Launching Which Will Help Fund SME’s

A new bank has just been launch which will be targeting established SME’s and issuing them loans, secured against the company’s commercial property. It also has intentions of launching professional firm financing and competitive savings accounts.

This is a perfect time to launch, due to how difficult SME’s are finding it to secure finance. In the second half of 2011 alone, analysis show that banks rejected over 60,000 loan and overdraft applications from SME’s.

The average loan that will be available will be circa £50,000 to £1 million and will be available to businesses that typically have an annual turnover of less than £25 million including assets valued under the amount.

Currently the bank will be focussing on companies based in Cambridgeshire, Leicestershire and Northamptonshire, although they will have a national broker coverage model.

This is a very exciting prospect for SME’s, however if you are not fortunate enough to be able to secure some of the new bank funding, then, as an alternative contact Beer & Young. Beer & Young have a large network of private investors that may be able to help you!

Financial Hardship Caused By Salary Cuts and Mounting Debt

Loss of income is still the main catalyst for individuals becoming in debt, this includes loss of a job, a pay cut or hours being reduced. This is followed by the spiral of debt and then bad financial management. It has become apparent that when an individual goes into debt it is difficult for them to find a way out.

This can then impede on their health and can lead to anxiety and worrying, health problems and even divorce and separation.

Many SME’s are struggling financially, with many new businesses ceasing to exist. Finding funding can be very difficult in recent climate, with bank loans being hard to source. That is where Beer & Young come in. We have a large network of investors who are actively looking to invest equity into businesses such as yours. Call today and find out how Beer & Young can help you and you may find that your business can turn around and that you can save the jobs of all your staff.

Soaring loses for travel operator Thomas Cook

Thomas Cook has experienced a very challenging 6 months in which the company reported a pre-tax loss of £712.9 million, a rise of £384.6 million on the same period of the previous year.

In order to rectify this and have any hope of rebuilding profitability, the company has secured shareholder approval for the sale and leaseback of its aircraft fleet and also its Spanish hotel arm as well as agreeing to sell its Indian business for £94 million.

A refinancing package has also been organised earlier this month with its lenders until 2015.

If you are an SME looking for finance and don’t have the financial means available to you that a larger company like Thomas Cook has, then speak to Beer & Young about private investment.