Entrepreneurs Succeed with us. Launch date 24th July

Peter Kelly the founder of Pegasus Funding Resources has Co-authored this exciting new business book for SMEs.

This book is a highly readable set of principles and actions, which will convert readily into increased performance and profits in your business.

Entrepreneurs can sometimes struggle to meet the goals they have set themselves and may need help to create the high performance business of their dreams. The aim of Entrepreneurs Succeed with Us is to help such entrepreneurs get to grips with difficult to identify and resolve business-critical issues and kick-start growth plans to achieve their goals. These may include a successful exit strategy. The book has been written by a team of highly capable professionals who appreciate the pressures of an entrepreneur's day to day and longer term problems. Its content is designed to help them recover from difficult situations by getting to the root causes of their sleepless nights.

Entrepreneurs Succeed with Us addresses a range of key issues that face all entrepreneurs at some point in their business. It examines the health of a company and helps re-examine both the company mission and the owners personal vision for the future. It also identifies alternatives to banks for financing the business, improvements that can be made to marketing to kick-start growth and the best strategies for a successful exit to your retirement plan. The book also explains how developing a growth mindset is vital to any companys future success, as is avoiding many of the pitfalls in developing ICT systems and complying with employment and other laws.

To find out more Click here to see all about the authors:
And Click here to buy from Amazon

Insolvency Figures show better start to the summer.

The latest Business Insolvency Index from Experian reveals that, overall, the business insolvency rate for the UK maintained its low level of 0.08% for the fourth month running, down from 0.09% in May 2012.

The insolvency rate fell in seven out of the 11 government regions in May 2013 – a major improvement on the same month in 2012, when just one region, Yorkshire, saw an improvement on the previous year. Insolvencies in the north east fell from 0.14% in May 2012 to 0.11% in May 2013, and Scotland also continued its recent form as insolvency rates stayed at 0.03% for the sixth month in a row.

Looking at insolvencies by company size, smaller businesses – which represent the vast majority of UK companies – have again done well. The best performance compared to last May was among companies with six to 10 employees, down from 0.20% to 0.16%. In fact, the insolvency rate amongst all companies with less than 10 employees, representing 1.8 million businesses, hasn’t risen for the last four months.

Max Firth, managing director of Experian Business Information Services for the UK and Ireland, said: “May’s insolvency figures show improvements across many areas of the UK. What’s particularly pleasing is that insolvencies among smaller businesses, which are the backbone of the UK economy, are showing a longer-term change for the better, while building and construction firms can also take heart at the drop-off in insolvencies after a particularly difficult period.”

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Asset Based Finance Helping SMEs

New figures from the Asset Based Finance Association (ABFA) show increasing numbers of smaller businesses turning to invoice finance, against a backdrop of some tentative signs of economic recovery.  
 
The latest figures (for Quarter 1, January – March 2013) see smaller firms increasingly using asset-based finance (£0 - £500,000 t/o) with client numbers in this bracket up by 439 or 3% just in the past quarter alone (Q4 2012 – Q1 2013). In total over 15,000 of the smallest businesses in the UK and Ireland are supported by asset-based finance, using the products for working capital and to fund growth. This is the highest figure for these smallest firms for nearly three years.
 
Overall the asset-based finance industry and the clients it supports have demonstrated encouraging growth.  Total sales from businesses using the products are up 9% compared to the same period last year (Q1 2012 – Q1 2013), hitting £63bn.
 
Total funding provided by the industry to clients has also risen, with advances from the ABFA’s members growing from £15.3bn last year (March ’12) to £16.3bn this year (March ’13), an increase of 6%.  This figure for funding provided is even more notable when set against the contraction seen in other forms of finance provided to SMEs (UK net lending was down 2% compared to the same period in 2012).
 
With the total number of businesses of all sizes supported by asset-based finance also rising by nearly a thousand year on year, it is clear that there is a developing awareness and appreciation of the industry’s products that are available.
 
Kate Sharp, chief executive of the Asset Based Finance Association, said: “It is extremely heartening to see so many of the smallest businesses choosing to use asset-based finance to fund their growth. Having recently surveyed accountants we know they say that access to funding is still a major issue for their clients. With some signs of confidence returning it becomes ever more important that firms can take advantage of the new opportunities that growth presents.
This is where asset-based finance already plays an important part, and our industry is ready and willing to do more to help fund the recovery.”

How safe is your cash with a bank?

 Having money in your bank is safe?   Well maybe not!

Since Carr vs Carr in 1811, when you deposit your money with a bank they create a debtor account and you become an unsecured creditor of the bank.
However, UK financial institutions with a banking licence are covered by the Financial Services Compensation Scheme (FSCS), which is designed to protect your deposit if the bank were to become insolvent.
The limit is £85,000 per person. So for a joint account cover of £170,000 is available.
If you have more than these amounts in a bank or building society account do make sure you spread it around amongst other banking licence institutions to protect yourself.
However, one thing to be aware of is that this limit is per banking institution - not per individual bank, so Lloyds and Cheltenham and Gloucester come under the same licence.
As an example, recently the Co-op bank has been in the news since Moody’s downgraded it’s credit rating to “junk bond” status.
Within the same banking institution as the Co-op bank is Britannia Building Society. Therefore, if you held an account in your own name only with both institutions with £50,000 in each of them you would in fact not be properly covered if the bank were to fail.
In total your deposits amount to £100,000 but since both institutions are under the same banking licence, in a worst case scenario only £85,000 of this amount would be covered.
So make sure that you spread your money around banks with separate licences.
I spoke to a prospective client who had €300,000 in one bank in Portugal.
He thought he was cautious and wanted to leave that money in a deposit account rather than putting it into investments. I advised to him was to move it asap and spread it around at least 4 separate banking institutions – This risk is lower even if he is getting a lower interest rate than with his current bank.
The aim must be to preserve capital even if you lose a small amount on the interest rate.
If you have any queries on where your money is currently held and you are concerned about what to do, please do call me on 01483 453755.

Euro suffers after eurozone recession continues into 2013

The euro fell across the board on Wednesday morning after the release of economic growth figures showing that the eurozone economy had remained in recession for a record sixth consecutive quarter.

Andy Scott, premier account manager at foreign currency exchange brokers HiFX, said: “As a collective, the economy of the 17 member countries contracted by 0.2% in the first three months of 2013, following a fall of 0.6% at the end of last year. The euro fell to a six-week low against the dollar, below 1.29, and fell by around 0.75% against the pound.

“Most of the individual country figures were worse than expected with France, the euro area’s second-largest economy, back in recession for a second time in the past four years. Italy’s recession continued for a seventh consecutive quarter, contracting by a further 0.5%. Germany narrowly escaped recession with growth of just 0.1%, which was less than expected, with the figures for the end of last year also being revised lower to show a contraction of 0.7%.

“It’s unlikely that these figures will have surprised anyone who pays even just the slightest attention to the news. The eurozone has some deep and entrenched issues that have come to light over the past few years. Several economies in southern Europe had been growing predominantly thanks to increasing government borrowing and spending. Now that Germany has a hold of the purse strings and global investors have demanded much higher rates of interest to lend money to these countries, the craters are there for everyone to see. The calls to ease the austerity measures that continue to damage confidence and hamper growth prospects will no doubt continue to increase but, publicly at least, Germany remains opposed to dramatically changing deficit reduction targets. There will also likely be additional pressure from politicians on the ECB to do more to try to stimulate the economy, but with interest rates at record lows of 0.5%, they may be limited in increasing demand. Monetary stimulus alone cannot undo the impact of economies that were largely dependent on state borrowing that is no longer available.

“The euro area looks like it could be in for a very tough couple of years with rising unemployment a problem that shows no signs of abating.”

Growth Predictions for UK Economy

The UK economy will continue to grow throughout this year, with GDP growth expected to pick up in 2014, according to the CBI’s latest economic forecast. But while recent economic data has been more promising, clear challenges remain both at home and abroad.

The CBI is forecasting GDP growth of 1% in 2013, unchanged from its previous forecast after official first quarter figures came in line with its expectations. Quarter-on-quarter growth is expected to gather pace gradually. The CBI is forecasting growth of 0.3% in the second quarter, 0.4% in the third and 0.4% in the final quarter of 2013.

In 2014, the CBI is expecting growth of 2%, with quarter-on-quarter growth to range between 0.5% and 0.6%.

John Cridland, CBI director general, said: “The UK economy is moving from flat to growth. Although recent data suggests rising business confidence, the economic climate remains tough, hampering demand here and overseas. Meanwhile, consumers remain under pressure as inflation continues to outstrip wage growth.

“Now the government needs to pick up the baton and deliver on promises to get finance to firms, cut red tape and help drive up exports.”

The CBI is forecasting that unemployment will see a small rise in 2013, to 2.58 million, before receding slightly to 2.51 million in 2014.

Inflation is expected to peak in the second quarter of 2013 (3.1%) before starting to fall steadily for the rest of the year, though remaining above target throughout 2014 (2.5%).

Uncertainty in the eurozone and the muted international outlook is limiting business investment intentions. Business investment growth of just 3.3% is forecast this year, but this is expected to pick up significantly in 2014 as global conditions improve (6.3%).

Eurozone growth continues to have a negative influence on UK export prospects, with an indifferent performance anticipated in 2013 (0.4%). An upturn in fortunes is expected throughout the next year, with 5% growth.

Household spending is expected to remain subdued with wage growth weak and unemployment expected to rise slightly. However, improving confidence, lower inflation and improving credit conditions should support a gradual improvement in household consumption, with growth rising from 1.3% this year to 1.8% in 2014.

Stephen Gifford, CBI director of economics, added: “Our latest survey data suggests that the momentum shown in the first quarter will continue into the next. We continue to expect UK economic growth to strengthen and become more broad-based over this year and next.

“Global uncertainty has receded somewhat, setting the stage for a gradual improvement in trading conditions.  However, while household incomes are expected to remain under pressure, improving credit conditions and confidence should maintain the momentum in the consumer recovery.”

Metro Bank & LGBA Selling Your Business Seminar

Selling Your Business Where: Metro Bank Fulham Broadway, London SW6 1BW (in the Fulham Broadway station complex) When: Wednesday 5th June 2013 from 6:00 p.m. to 8:00 p.m. Please email richard.wickes@lgba.co.uk by Friday 24th May 2013 to confirm your attendance Whether you plan to sell your business now or in 20 years you should attend our informative seminar on Exit Planning at 6:00p.m. on Wednesday 5th June.  It will tell you how to assess the value of your business now, and what to do to increase that value. It is an opportunity to learn about the way to prepare your business in order to obtain the maximum value when you wish to sell it. Ideally you should start planning your exit about three years before you wish to complete it.  The strategy to increase the appeal to a potential buyer is significantly different from that used for business growth.  Everyone present will be able to comment on anything they have heard, and to question the panel and the other delegates. ·         Hear from experts the best ways to maximise the value of your business ·         Make your own contribution to the discussions ·         Hear more about Metro Bank – the first High Street Bank to open in over 100 years ·         Enjoy some light refreshment whilst networking with other like minded local companies Presenters: Peter Kroeger (www.peterkroeger.com/index.php/selling-a-business/ ) specialises in preparing businesses for sale, and in the sale and purchase of businesses. Stephen Cowburn (www.thehrc.co.uk/our-advisors/stephen-cowburn ) will talk about the staffing aspects of sale. Peter Kelly (www.pegasusfunding.co.uk) will talk about the funding aspects of buying and selling a business. The event is organised by the London Group Business Advisors (www.lgba.co.uk), a network of people who have grown their own successful businesses, and have advised and mentored other companies.  Together they cover almost all disciplines (marketing, finance, HR, IPR etc).