The last few years have been some of the most challenging and painful businesses have had to endure for almost 20 years, but we’re a resilient lot and I believe we’ll emerge from this current economic quagmire stronger and healthier than before.
We’re not out of the woods yet, not by any stretch of the imagination, and the spectre of a double-dip recession, which hopefully will not transpire, is looming ominously over our heads.
Surviving a recession requires a determined and dogged approach. When I first launched Exchange Communications in 1990 the UK was in the midst of one of the worst recessions in modern history. I truly feared for the future of my fledgling business, but like many others I lived to tell the tale and I managed to do so by implementing stringent policies on procurement and credit control.
We would never order any telephony equipment until we’d completed a sale, which meant we didn’t have to order stock in bulk. Surviving and operating in a recession is all about business flow and structuring, and having a tight fiscal policy played a major role in helping my company get to where it is today.
Tom Sime, managing director of Exchange Communications
Setting up your own business brings a great sense of euphoria but that enthusiasm and desire to succeed will only get you so far. Companies have to adapt very quickly in order to survive and in today’s climate, if they fail to implement effective credit control procedures then they risk grinding to a halt.
Clearly there are external forces which play a major role in determining the future success of a business, and if we are to avoid a repeat of recent years there is another course of action which I believe would help accelerate economic recovery, the responsibility for which lies at the feet of government.
Through speaking to other businesses and potential clients it’s clear there is a willingness and desire to invest in infrastructure, such as telecommunications systems, but people simply don’t have the capital to do so.
The economy relies heavily on the success of SMEs, but a huge number of business start-ups and existing firms are going to come up against cash restraints when it comes to investing in their company.
I feel it is incumbent upon the Government to exert its influence and encourage the state controlled banks to start lending again. If they were to do so then I believe companies like ours and many others would see a sharp increase in enquiries and sales. It would also help companies better equip themselves and ensure they are in the best possible condition to tackle what lies ahead.
Don’t get me wrong, businesses can and should be doing more to help themselves but we all require support and it would appear that not enough is being done to support growing businesses and perhaps more worryingly, new start-ups.
Providing access to funding will help create the correct environment for business creation and inspire confidence in people wishing to go it alone.
Tom Sime
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