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Best Placed to Benefit from the Downturn
19/12/2008
Research shows larger firms aged between five and nine years, are best placed to benefit from the downturn.
Businesses which having been operating from five to nine years are benefiting most from the downturn, according to research by Tenon, the turnaround, recovery, restructuring and insolvency specialist.
Nearly two in five (37%) companies in this category confirmed the economic downturn has provided opportunities for their business, compared to the national average of 29%. Established firms than have been up and running for more than 20 years are the least likely to benefit (26%).
Smaller companies are more vulnerable as just 23% of companies with fewer than nine staff have felt any benefit from new opportunities arising from the downturn. This is compared to nearly a third of companies (32%) with 50 or more staff showing how a depth of resource can support a company.
The top five benefits that are expected to boost businesses in the UK, are:
1. ‘Opening doors’ for the business (47%)
2. Taking clients from competitors (40%)
3. Increasing client/customer base (33%)
4= Purchasing assets/stocks at a good price (13%)
4= Increasing revenues (13%)
Carl Jackson, head of Tenon Recovery, said:
“Businesses of this size are unlikely to have experienced a downturn of this nature, but they do have robust procedures within their business and this will enable them to weather this financial storm.
“By comparison, established firms have the experience but often lack the flexibility to make significant changes or system overhauls. Younger firms lack overall experience making it difficult to judge which changes to implement.
“Businesses need to remember that cash is king – regardless of the size of the firm. Good advice and tight financial planning mean that there could be other options. So we’re advising all companies to get a winter ‘health check’ to diagnose any issues so they can be put right before they become critical to the company.”
To help companies know whether they are fit for survival or need immediate help, Tenon Recovery’s health check covers five core areas: management information, management control, key relationship management, systems & processes, and financial wellbeing.
Carl Jackson added:
“By identifying these key areas and developing a checklist for entrepreneurs, we hope to impress on businesses the need to plan – there is no such thing as being too prepared, particularly in the current circumstances which are likely to get worse before they get better. Survival depends on many factors but among the most critical is the willingness to take advice early and from quality advisers.”
For more information about Tenon please contact: Martin Jeffs
Submitted by James Kelsey