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Tuesday, 4 January 2011

Business prospects in 2011

2010 was in many ways a good year for some businesses. Larger businesses faired quite well with listed company's shares ending on a high as the FTSE 100 rose to over 6000. Apart from a couple of high profile collapses in the building sector, large businesses have been able to cut costs and have benefited from low interest rates.

The outlook for small to medium sized businesses is more uncertain with discretionary spending perhaps being reined in. The recent poor weather has hurt fragile businesses that may not have sufficient resources to cope. Rises in VAT, employers National Insurance, and business rates will have an impact on small businesses.

In 2011 the most vulnerable sector looks to be the leisure sector as they have missed out on important christmas trading. If last year is anything to go by we may well have a snowy January as well!

The real test will come if there is a rise in interest rates this year to stifle inflation. People in work with mortgages have seen their disposable incomes hold up well but rising prices and an interest rate rise is likely to be a dose of reality.

We are helping an increasing number of businesses in the leisure sector to reorganise and recover.

If you have cashflow problems, as a result of the weather, then it may be possible that your creditors will be more sympathetic. Best to talk to them as they will have had problems of their own. Doing nothing is not a good start to the year! If you feel you cannot do this, or the problems too complex, then talk to us. We offer at least a 30 minute discussion with our professional advisors.

There are solutions such as; trading out, a company voluntary arrangement, administration, or in the event that the business is not viable going forward - then liquidation. There are many different options and we have lots of different pages on our website at to guide you through the process.

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