There didn’t have to be a Recession

If the Office for National Statistics had used a wider measure of growth to measure their statistics then there would not have been a recession.

The GDP was at its peak in 2008 and since such time has dropped by 4%, however employment figures are still as high as they were before the financial crisis.

A senior economist at Goldman Sachs has stated that there has been no double dip recession, although he will admit that UK growth has been slow over the last year.  However, Ernst & Young have been linked to saying that within the second half of the year the high street will be making a come-back.

If your business is going through a hard time financially with the recession hitting funds dramatically then speak to Beer & Young about investment options available for you.

Small Firms Are Essential For the Stability/ Rise in the Job Market

A  recent report produced by the Federation Of Small Businesses highlighted that small firms are essential in strengthening the economy and sorting out levels of unemployment. SME’s give jobs to aproximately 1.3 million disadvantaged and unemployed inividuals whereas large firms with more than 250 employess will only take on approximately £130,000.

Students, disabled people and those who have been sick long term are more likely to be offered work by a small business. 95% of this group that find a job in the private sector  will work for an SME or start up company. 88% of actively job seeking unemployed people will also find work in one of the aformentioned type of companies too.

However the market is still volatile, costs are rising and demand is falling so company finances for many are stretched to the limits. Beer & Young have many investors who understand the importance in SME’s and soley invest in them. Don’t wait until it’s too late call today. Here's a testomonial: http://www.beerandyoung.com/workplace-training-establishment/

Innovation and Skills in Business

There is a year on year rise of 4% in business lending nationally. More patents are registered by SME’s than by all the big companies combined. Many companies that think they need money in fact just require experienced members of staff and a high level of team work from like-minded individuals.

During The Olympics companies were pulling together and striving to achieve standards of excellence. This shows the importance of a positive attitude as well as sharing knowledge and mentoring.

Success in business is largely driven by having the right attitude. This is important at all levels of business. It is important to be passionate about what you do and realise that the more you put into it the more you can get out of it.

However, that being said sometimes it does all come down to not having enough working capital in the business and requiring a cash injection. If this is the case then Beer & Young are the people to speak to, being that they are market leaders in the field.

Rise In Alternative Finance

500 New UK companies have tapped the abl market between January and the end of March 2012. There are also currently 42,000 SME’s who regularly raise capital using this kind of funding. In the first quarter of 2012 lenders advanced £15.4bn against assets and invoices, a rise by 4% on the same period in 2011.

The rise in ABL could be due to the fact that banks are less likely to lend to companies than they have been in previous years. The Bank of England has dramatically dropped their amount of lending this year, with figures dropping £9.6bn in quarter 1 (the biggest quarterly drop since 2009) and £1bn in quarter 2.

Beer & Young know all of the lenders and can work with them in securing you the best deal possible. Why not check out Beer & Young’s awards and then make that all important phone call.

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.

Pay Day Loans

Pay day loans, although being a solution to short term debt problems are clearly a quick fix and can do more harm than good in the long run. With these loans interest rates incurred can be very high and if not managed correctly can make the situation worse long term, with many taking out further loans to cover the initial loan.  This can spiral out of control and you can find yourself in worse debt then when you started.

If a pay day loan seems like too big a risk for you or the bank won’t give your company finance then contact Beer & young for a chat about private investment, how it works and how it could work for you.

Small businesses are the way forward

We have recently been informed that we are in a double dip recession. If we would like this to change then we need to find a solution and a way out of the slump the economy has been in for the last few years.

The governments priority is about reducing debt, so can’t afford to invest in public infrastructure, thus growth is stagnant. The same worry about debt has had an impact on consumer spending. 

Outside of the public sector, 97% of all UK workers are employed by small businesses; however, they are currently being very cautious, not taking risks or moving forward with growth and development. We therefore require these companies to keep people in jobs and boost the economy

Part of the worry for small businesses is funding. Banks are not as prepared to lend as they used to be. You have always needed to be in a very strong position to get a bank interested and now this has become even more difficult.

If your company is struggling financially and could do with a cash injection, call Beer & Young today and discuss business angel investments.

Approximately 3,000 jobs lost as Clinton Cards goes into administration

Having been in business since 1968 and trading as the largest UK retailer across its two retail brands, (Clinton Cards and Birthdays) it has come as a huge blow for almost 3000 employees to lose their jobs as the company goes into administration. The group has suffered due to bad trading conditions causing significant cash flow problems.

Half of Clinton Cards retail estate will close, taking the number of stores from 784 to 350 Nationwide. The closures include 200 Clinton Card stores with the remainder being all of the Birthdays stores.

With Moonpig doing so well it may be fair to say that Clintons and Birthdays need to reconnect with the great British card buying public.

The key to business survival, particularly when running a small business is to stay in control and to talk to a professional within the industry. Call Beer and Young today for a free, no obligation chat.

Beer & Young MD Visits 10 Downing Street for the Second Time This Year

For the second time this year Beer & Young managing Director, Nick Young will be attending a breakfast meeting at 10 Downing Street to discuss the role and expansion of business angels.

The topics due to be covered in the meeting are attracting potential angels, how existing angels can act as figureheads to encourage others to consider angel investing, which groups should be involved and which focus to take. Other material covered will be the Business Angel Co-Investment Fund, the Enterprise Investment Scheme and Venture Capital Trusts, the Seed Enterprise Investment Scheme, the Business Coaching for Growth Campaign and the Get Mentoring Initiative.

Nick is a key player within the industry and has many years’ experience and a vast knowledge in the field. If you are considering the Business Angel route for your business then call Beer & Young today.

SME Bank Lending Crisis

Banks are the main finance source for SME’s in the UK. Recent reports show negative growth for SME’s which has not been helped by banks not lending so freely, thus making it harder to acquire traditional sources of working capital.

It appears that banks were over £1 billion short of the agreed target to lend to SME’s when the government scheme was launched over a year ago.

Due to the global framework governing the regulation of bank capital in the current financial crisis also known as Basel III, which encourages and promotes banks to lend to fewer high risk businesses and instead hold onto the capital. SME’s are considered high risk ventures which will ultimately hinder their growth and expansion.

If your business in struggling financially and can’t get backing from your bank, why not talk to Beer & Young. Beer & Young offer free, no obligation advice as well as having the largest network of active business angels in the UK. Call today- help could be at hand.

Rising Business Failures

Recent figures show that over 5000 businesses have gone bust so far this year. There has been a 4.3% rise on liquidations during the first quarter of 2012 on the same period in 2011.4,303 liquidations have occurred during the time period.

There has also been a 1.8% rise on the period Q1 2011 to Q1 2012. 1,290 other forms of insolvencies have also taken place. These include administrations, receiverships and CVA’s.

It is believed by professionals in the industry that the situation will get worse before it gets better, with many more businesses failing in 2012.

Many companies are only currently surviving due to creditors propping them up. An increase of pressure from creditors could push companies over the edge and bring to light the number of companies that are truly struggling with debt.

Don’t let your company fail. Contact Beer & Young to discuss business angel investment and see if you can save your business!

More than 1860 businesses failed a month in Q1 of 2012

Figures released this week show that over 60 businesses a day went bust in the first quarter of this year, the highest number recorded since 2009. There was a 5% rise from the same quarter of 2011. Failures in the business services sector contributed to 25% of the total company insolvencies.

The biggest sufferers were reported as design agencies, PR agencies, IT consultancies and equipment and manufacturer suppliers with hospitality, tourism and construction not far behind. The construction sector made up for 10% of al insolvencies and the property services sector for 7%.

If your business is having financial difficulties, don’t wait until you are insolvent before dealing with the problem… call Beer & Young today!

Britain’s double- dip recession?

Wednesday 25^th April’s shock revelation showed that Britain is experiencing its first double- dip recession since 1975.

A recession is defined as two consecutive quarters of contraction (negative growth). The economy shrank by 0.3% in the fourth quarter of 2011.

The industrial and construction output are responsible for the most recent decline as the sector barely grew.

There is now a worry that this data will dent already lacking confidence and push the recovery back, with a likelihood that the economy could weaken further.

The shock revelation piles further pressure on the government to increase their efforts to boost the economy and overcome challenges to ease Britain’s debt.

However, these figures are only preliminary and are only based on about 40% of available information, which will be reviewed to reach further statistics in the near future.

If your business is suffering due to the state of the economy and lack of consumer confidence then call Beer & Young today for some free advice on ways to save your company!