Pictured: Henry Briggs
One of the West Midlands' leading advisors to owner managed
businesses and small and medium size enterprises is urging business
bosses to act "like hawks".
Henry Briggs, partner at the Birmingham office of Haines Watts,
said the next 12 months were likely to be extraordinarily tough for
businesses as they compete for market share and survive by winning
business from others.
"Hawks are birds of prey that vigorously defend their
territories, probe for weaknesses and above all, continually keep
an eye on what is going on. Company bosses that are looking for
success could do worse than model themselves on hawks," said Mr
Briggs.
The first priority in the coming months is for businesses to
keep a "beady eye" on cash flow and creditors.
"For most businesses, this is their weak spot. Recent figures
from the payments company BACS revealed that SMEs are owed a total
of £33.6bn - a rise of 10% on the previous 12 months and
highest figure since records began in September 2007.
"Each SME is owed an average of £39,000 and is waiting as
long as two months to get paid. The worst payers are larger
businesses which put huge pressure on smaller concerns that are
unable to get credit from the banks."
At the same time, businesses need also to defend their
territory.
"In a declining or static market, the only way you are going to
increase turnover is by taking business off someone else. Like a
hawk, you have to defend your businesses' own territory and make
sure that predators don't move in.
"At the same time, you can take advantage of weaker businesses
that are lower down the food chain. Weaker companies can provide
opportunities for growth and take over," said Mr Briggs.
Finally, businesses need to take advantage of any of the
"scraps" the government might throw at it.
"The Chancellor has announced a number of measures that aim to
improve access to finance for SMEs. Every morsel helps - provided
businesses take advantage of it."
Haines Watts principally advises SMEs and owner managed
businesses.
For more information on Haines Watts, please visit their website
here: www.hwca.com