Please visit https://www.companyrescue.co.uk/ for confidential help and insolvency advice or email keiths@ksagroup.co.uk

Friday, 1 August 2008

Bad news on all fronts

It says something about the current febrile economic conditions when Breakfast news leads with headlines about annual reports from BA and Alliance & Leicester. Profits down 88% and 99% the news reader almost shouts. What will the media say, when company failures rise, unemployment rises, inflation goes past 5%, house prices continue their fall and drop by more than 25%? The end of the world is nigh?

How will this all end? Will it be a recession and if so why is that a bad thing? Why is it ok to grow every year for 14 years and then have a "fit" when growth stops or declines modestly? This has always puzzled me. Perhaps it can be summed up by "greed and fear". Bull and bear at its basest human emotive level.

Still the good news, (there is always a silver lining) is more and more companies are asking for our help. July was our busiest month ever for enquiries into KSA. This week we have taken on 5 new clients alone.

My first statement to all worried directors when they ask the solution to their problems is, "look its going to get tough out there for up to 2 years, batten down the hatches, cut costs and lose people now to survive it. Then if the downturn is less steep and we have reorganised your debt, you will emerge leaner and meaner in the upturn".

For some that's too aggressive and they walk away from us. I would rather they walk away now, as to be honest, they don't seem to get it! Will they survive, who knows.

Have a good weekend!

No comments :

Post a Comment

Many thanks for your comments. If you have a private business problem and you want advice give us a call on 0800 9700 539 or email me at keiths@companyrescue.co.uk. If you are a professional advisor with a troubled client, please suggest they visit www.companyrescue.co.uk or contact me as above.

Web Analytics