Tips to avoid worst of chill from the ‘Beast from the East’
A business recovery expert has outlined a four-point plan to help North East small businesses avoid catching a cold from the ‘Beast from the East’.
The extreme weather may be a fading memory, but with the snow and ice keeping shoppers away from high streets, disrupting supply chains, causing projects to be delayed or cancelled, and forcing many businesses to close, the economic impact could be much longer-lasting, especially for smaller independent stores and businesses.
Recent research by insolvency and restructuring trade body R3 found 38% of the 80,000 active firms in the North East already have a higher than normal risk of entering insolvency within the next 12 months.
North East chairman Andrew Haslam said: “The single most important thing for business owners and managers to do if they think their firms are heading for trouble is to take advice from a qualified source as soon as possible.
“There are more options available than ever before for helping business owners resolve difficult financial situations, and the sooner they start looking at what these are, the more choices they will have available.
“Keeping a tight control and overview of your cashflow situation is essential as this will help demonstrate the continuing viability of the business to all parties. Make sure too that you do all you can to get payment for any outstanding invoices within the agreed time limit.
“You should also communicate quickly and clearly with both your bank and creditors, showing them how you’re looking to resolve your problems and getting them to buy into the strategy that you’re putting in place.
“The financial chill of the ‘Beast from the East’ is likely to be felt in our region long after the snow has gone, but with the right approach, it should be possible for many struggling businesses to find their way through to calmer conditions.”