Published on 14 November 2010 by Tony Groom Normally most forecasting is done for lending, fund raising or other investor related purposes and therefore with hope of future growth built into the forecast. Such forecasts show how loans will be repaid and investors will achieve a return on their money. Such forecasts are often not […]
Articles Tagged: Business Model
The Focus Must be on Cash Flow When Times Are Tough #029
Published on 21 January 2011 by Tony Groom Profit and turnover are, of course, important measures of business performance but when times are as difficult as they are at the start of 2011 and many businesses are finding themselves in difficulties the main focus must shift to cash. Cash flow is the most immediate indicator […]
It is obvious why Bank Fees are High and Business Lending is so Difficult #051
Published on 3 June 2011 by Tony Groom Recently Business Secretary Vince Cable called for significant improvement in lending to Small and Medium Sized businesses (SMEs) through Project Merlin. The figures for January to March showed a shortfall of 12% against the £19bn that represents a quarter of the annual £76bn target agreed with the […]
Employee Equity Can Improve the Chances of a Successful Restructuring #034
Published on 31 January 2011 by Tony Groom Businesses and the UK economy are under pressure from inflation thanks to increased taxes, such as VAT, and commodity prices and also pressure due to declining sales thanks to the reduction in consumer spending. The current situation is unusual as there has been a considerable amount of […]
Do Small Businesses Understand Working Capital and Liquidity? #046
Published on 6 May 2011 by Tony Groom There is some doubt about whether small businesses in particular understand the concept of liquidity. When borrowing against assets, such as the sales ledger using factoring or invoice discounting or plant and machinery finance or property mortgages, there seems to be a widespread misunderstanding among businesses about […]
Companies Are Failing to Manage Debt Collection and Credit Terms #055
Published on 1 July 2011 by Tony Groom Many companies are risking their own solvency and ability to carry on trading because they are not managing their debt collection proactively nor are they setting credit terms with their customers. And as a consequence they are suffering from late payments, or worse write off due to […]
Cash is King When a Business is Facing Financial Pressure #010
Published on 14 November 2010 by Tony Groom A company can be said to be insolvent on any one of four tests: the cash flow test, balance sheet test (negative asset value), an unsatisfied judgement (usually a county court judgement) or an outstanding statutory demand. Of these four the most crucial is the cash flow […]
Businesses Should Pay Down Debt and Avoid Offers That Seem Too Good to be True #064
Published on 18 October 2011 by Tony Groom Many businesses are overburdened with debt and desperate for ways to deal with pressure from banks, HMRC and other creditors. All too often they are prepared to pay off old debt by taking on new debt which leaves them vulnerable to unscrupulous lenders. In spite of the […]
Break Free from Servicing Debt and Invest in Growth #045
Published on 29 October 2011 by Tony Groom Britain lacks self confidence and suffers from inadequate education, risk averse bureaucrats and unimaginative politicians trapped in the Westminster bubble far removed from the real world. Former CBI chief Lord Digby Jones identifies all these as obstacles to rejuvenating and reforming UK Plc In an extract from […]
Successful Retail Business Models Can Happen in a Depressed Market #059
Published on 1 August 2011 by Tony Groom Despite the ongoing doom and gloom on the High Street there have been some bright spots. All the following success stories illustrate a crucial point – that retail decline is not terminal, as long as businesses think innovatively. The first success story is Coffee Nation, which has […]