Getting organised can help beat stress in business
By Mr Bankruptcy
31st October 2022
If you run a business, you’re probably used to feeling that managing finances is a rollercoaster ride; there are plenty of ups and down and on occasion you feel like everything’s coming off the rails.
This takes its toll at the best of times, but it’s even worse when you’re managing your way through a sustained period of financial turbulence, with the uncertainty and stress this causes.
Despite the personal impact that problematic debt can have, business owners feel obliged to work even harder to sustain their business during challenging times because others depend on them. But how can you make that task a little more manageable?
The business environment for SMEs
Between Brexit, lockdown, political leadership changes, inflation and threat of recession, recent times have been tumultuous for small and medium-sized businesses.
Although they still account for 99.9% of the UK’s business population, it’s hardly surprising there’s been a 6.6% drop in SME numbers since 2020. The ONS reported that turnover for 45% of SMEs fell by 20% since the pandemic.
And the Bank of England reported last year that 33% of SMEs had debt levels over 10 times their cash balance, a 14% increase from before Covid. For 18% of SMEs, monthly debt repayments take up more than 15% of their income (a 3% increase), and that 10% of SMEs have high debt levels and high debt repayments.
With news like this, it’s not at all surprising that many business owners are feeling overwhelmed.
Time to get organised
One way I’ve seen business owners try to deal with looming financial challenges is to ignore them and put off decisions, however, this solves nothing. Instead, getting organised and addressing debt can give that important feeling of being back in charge, making key decision-makers more positive about the future.
Here are some helpful steps anyone with mounting business debt can take:
- Be proactive. Delaying action can make a bad situation worse. Actively seek out opportunities for new clients, streamline operations, and adapt strategies to new conditions.
- Gain visibility. A greater awareness of what’s going on in your business and across your sector enables you to react quicker to changing circumstances. It also helps you to feel more in control.
- Keep a grip on finances. When you suspect bad news, the temptation is not to look at your finances. But understanding your figures lets you spot the dangers and identify where extra support is needed before matters escalate.
- Readjust budgets. Rewrite your financial plan realistically and honestly to reflect your current financial situation.
- Organise your time. Work/life balance can be a luxury when you’re responsible for a business, but you can keep the two separate. Allow time to switch off from work, to rest and recharge. When work spreads across all your waking hours, productivity goes down, it’s harder to get a clear perspective and your loved ones suffer too.
- Asking for help is key. Don’t think you have to do everything yourself because you hold ultimate responsibility. Be prepared to delegate and seek help from a business partner, friends, a coach or professional financial advisor.
The economic turbulence looks set to continue for the foreseeable future, so it’s important to organise your affairs now, so that you’re fighting fit and ready to take your business through to better times.
James Rosa Associates
James Rosa associates is a firm of debt advisors and debt adjustors. With a supportive and friendly approach, we offer a holistic advice and professional services to individuals and business owners/directors who need to tackle unmanageable debt or who are involved in civil or commercial disputes. Our services include:
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Find out if you qualify for a free consultation
If you want to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk to discover whether you qualify for a free consultation.
Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.