Liverpool accountant reveals encouraging findings following a flagship survey
Interesting findings derived from a recent flagship survey have been revealed by a top Liverpool accountant.
Russell Silverman, Director of Haines Watts Chartered Accountants on Victoria Street, has compiled the data from the national survey, to make local companies aware of the growth of the owner-managed business sector in the UK.
The results gathered found that despite operating in a difficult economic environment, SMEs throughout the UK are thriving in range of sectors. It is evident that over the previous three years, 44% of the respondents were achieving continuous growth.
However, responses also indicate that many business owners are still struggling to manage cash flow. With cash being the essence of any healthy business, SMEs feel the impact of long invoice cycles and late payments.
Russell said: “Generally businesses we deal with that have achieved growth, particularly during recent economic times, have done so organically. They have focused on winning new business through reputation, referral and good contacts rather than by acquisition.
“We recommend that owners of SMEs keep a running written forecast for both short and long-term cash so the business doesn’t get caught out. It is an old adage but it’s true that you can be profitable and still go bust through lack of cash.”
In hopes of withstanding the harsh business environment, SMEs must formulate a realistic and achievable business plan. A series of time constrained aims and objects are crucial in provoking both growth and revenue.
Russell added: “We believe that a current business plan is an essential tool for any growing business. Finance providers demand this anyway. A business plan allows you to crystallise your hopes for the business and, through refinements of the plan, to test and challenge your assumptions. The plan also helps key management to buy into the vision.
“Our dedicated team of specialist advisors at Haines Watts can assist local businesses in achieving the balance between managing immediate pressures and creating a strong, sustainable strategy for the future.”
This was posted in Bdaily's Members' News section by Stephanie Wynne .