Avoiding Concentrations In Business

Date: June 2016, Category: insolvency, Author: admin

You’re a business owner, so concentration ON your business is a key factor.

However, as a business owner, its important not to confuse this with concentrations IN your business!

What we mean by this is that its important to avoid “concentrations” or over-reliance on a certain aspect of the business as these can lead you into trouble.

Have a think about your business, and see if you think any of the below are relevant to you. We would much rather work with you to help drive business growth than work with businesses that lead to insolvency cases! Do you have:

  • One product (or a very limited / specialised range) – it might go out of fashion, become obsolete or be replaced by a better product?
  • One supplier –would you be able to manage your business or find an alternative source if they were to fail?
  • One customer – the sooner you can grow your customer base the better. If you allow your customers credit terms, the bigger the customer base the more the risk is spread.
  • A key member of staff – it may be the boss, the owner/manager who is the driving force behind the enterprise. Could it survive without him or her? Are there succession plans in place?

Clearly it is not always possible to avoid these situations, particularly in the early stages of a new business. However by keeping an eye on these risks, and developing strategies to overcome them, you are giving your business a greater chance of being resilient, and ultimately successful.

However as we all know, if your plans and strategies don’t work out as planned, there is still help available. Call us as soon as possible and we can help you devise a survival strategy!