Business advice news | UK Business Advisors

How to pick the best candidate for your Technology business C-Suite

June 30, 2019 By Mike Pill

With the current skills shortage in the technology sector and ever-increasing demand it is simply not enough to broadcast a role when you are recruiting for your leadership team. Placing an advertisement or hoping a quality candidate will alight upon your website will rarely succeed. You deserve and require the very best of candidates. Invariably, finding great people requires a more proactive approach.

The best candidates are not looking for your role

The best of candidates, or targets, are probably fully committed to working for a competitor, supplier, customer or possibly currently working overseas and not actively looking for another role. Alternatively, they may be restricted via a compromise agreement, garden leave or clause in their current contract – all of which can be the subject of further negotiation and equitable determination.

A discreet approach

A thorough, comprehensive, discreet and confidential first approach to the targets is required for a number of reasons.

You may not wish to disclose your plans to competitors, customers, suppliers or other key employees in the first instance only to suffer rejection.

Without disclosing your identity and plans, the target is open to considering an alternative offer and challenge. An opportunity can be taken to discuss what they are looking for. The target can assess the outline description of your opportunity and challenge. They can consider its appeal and see if it builds on relevant past achievements.

The missing link – Executive Search

In order to achieve this, the assistance of an Executive Search consultant (AKA head-hunter) is recommended. In the UK we have probably the best professional football league in the world which has been enabled to a large extent by professional search consultants. The profession has also assisted many of the most successful large companies and is available to the SME market. The cost is not prohibitive and can be negotiated to an acceptable level. It is worth developing relationships with these individuals so that they can become more familiar with your business and be available to contribute when required. The dividend from this investment can be considerable.

For a confidential chat on finding a new member for your C-Suite IT team contact our recruitment specialist advisor Mike Pill by email at mike.pill@hcbusinessadvisors.co.uk or call him on 01276 684007

Case Study – Part-time Financial Director helps growing business to meet the audit threshold with confidence

May 28, 2019 By Chris Chapman

Background

Following a period of rapid growth, the business had outgrown its finance systems, processes and controls. The business was approaching the audit threshold and quarterly corporation tax payments, so cash control and forecasting needed to be reviewed much more frequently.

The MD required more experienced commercial and financial support to help drive growth and assess future options while ensuring that customer focus remained at the heart of the business.

Searching for a solution

Following an introduction from a strategy consultant who had already been working with the company, we met with the MD so that they could outline their need and discuss how a senior Finance Director would restore confidence, professionalise the finance function and contribute to commercial issues and challenges with regard to growth.

Fundamentally, the Finance Director needed to introduce:

insightful management reporting and analysis of performance to enable the MD to make strategic and commercial decisions based on meaningful information
stronger financial controls
more efficient financial processes

In addition, the role would involve:

professionalising the finance function in line with the rapid growth of the business, and ensure it was ready for an audit.
restoring confidence and recruiting additional resources where appropriate.
introducing robust cash forecasts, both short and longer term.
contributing to commercial issues and challenges with regard to growth, new tenders, pricing and strategy.
maximising the long-term value of the business.

The solution

Within a week of the meeting, we introduced a senior FD who was an excellent match for the client’s needs and culture due to:

possessing strong fundamental accounting skills to ensure smooth running of the day to day activities, that all compliance and regulations were met, and the accounts were true and fair.
being comfortable getting their ‘sleeves rolled up’ and understanding the detail as well as the big picture.
having a demonstrable track record of helping businesses achieve profitable growth.
being experienced in maximising shareholder wealth.

The Finance Director was engaged on a part time basis to enable the client to benefit from the seniority of the FD’s experience at a fraction of the cost of a full time hire.

Benefits

Within the first six months, our Finance Director had delivered against the initial requirements of the strategic high-level brief. They provided added value in terms of identifying additional areas for improvement and implementing positive solutions, such as:

delivering a significant improvement in the procurement process and financial controls.
introducing a more efficient operating system to reduce cost to the business.
proposing and assisting with the selection of an improved project management system and its integration with the financial management system to provide information on project profitability that wasn’t previously available.
proposing and systemising additional resources in the finance team.
working with strategic advisors and NEDs as well as the senior management team to help prepare the business for growth.

The changes were implemented so as to ensure that customer focus remained a key aspect of the business and was enhanced rather than disrupted.

The key benefit to working with a one of our part-time Finance Director is that their experience and expertise means they can very quickly fit into the management team, identify the known and unknown priorities and deliver commercial outputs within a matter of days.

For a confidential chat about placing an experienced part-time Financial Director into your business contact our associate Chris Chapman on chris.chapman@lgbusinessadvisors.co.uk

Is your Sales Report doing the job it’s meant to?

May 28, 2019 By Susanne Currid

Sales, sales and yet more sales……….PLEASE

A simple innocuous request a month ago to a client of ours got me thinking!

I had simply asked that at our next monthly meeting if they could give me a “Sales report” for the previous month. I did not think any more about it.

When we came to that point in the meeting the following month, the report was produced!!

Lo & behold I was presented with a list of all the beers that they had sold the previous month, a long list of different beers, in cask, keg, can etc.

To them, sales simply meant the beer that they sold. To me it meant the outlet –Pub, Bar, retail etc.

I believe this is a crucial tipping point for a brewery or any other business, when sales becomes about the outlets buying product or service and not simply about the amount you have sold! Knowing who bought and, equally importantly, why they bought can provide insights you can replicate elsewhere.

For your Sales to fly, they have to be driven by metrics and customer feedback. The truth is no one has enough sales people. You are always working with too few and therefore you have to direct your sales talent in the best way.

You need to use your systems to give you the metrics that are essential to develop the business. Without these metrics, we continuously say, it’s a bit like driving without a dashboard in your car! Collecting valuable customer feedback can also better inform the numbers and lead to those strategy driving insights.

Standard Sales Planning

At a minimum you need to do the metrics for the normal monthly business growth.

Your accounting/Sales system should provide you with information such as:

The numbers of orders per distribution channel per month
The frequency of orders
The average order size
Average price per unit or service delivered
Region sales turnover
Etc etc etc

From this you can see where you are weak, where growth is happening. It enables you to plan.

To illustrate, here are a few examples showing how metrics can guide your Sales targets.

You have an average value per order of £250. You want to increase sales by £5,000/month in that channel so you’ll need to win 20 more orders.
Each pub orders around 3 or 4 casks/kegs, so you’ve got to shift 60-80 per month – van takes 25 – that means 3-4 more van loads?

Equally you need to take advantage of upcoming seasonal sales opportunities or selling events. This means planning well in advance.

For example, Christmas looms for us all. But where are you with your Sales planning for the festive season?

If you were in the toy industry you would place your orders for Christmas 2020 in 2019. Big retailers planned for Christmas, prior to last Christmas.

But how many businesses have already sorted out or planned their peak seasonal offers and activities? Is it just more of the same? Have you looked at what happened last year and can it be improved?

Sales is not rocket science.

It is doing the analysis to actually see what is happening
To then plan an activity
To measure its effectiveness
Tweak it as needs be

Keep doing the things that work & stop doing the things that do not.

At UKBA

We don’t do Silver Bullets!
We don’t do complex plans
We help you analyse and create simple, step by step plans to increase your business.
We help you put together the systems and processes you need to get that all important Sales data

For a ‘no-obligation’ chat about your Sales Reporting approach, why not get in touch with one of our Sales and Marketing advisors at info@lgbusinessadvisors.co.uk to arrange a suitable time to talk.

Beyond technology – what other sectors are benefiting from R&D tax relief or credit?

May 5, 2019 By Linda Eziquiel

Your annual accounts are ready to be prepared but could you find ways to reduce your tax bill or get a cash payment to support your new product development?

Well it might be that you can if you are undertaking development activities that qualify as Research and Development (R&D). It’s not just for rocket scientists or research laboratories. In fact far from it, all sorts of development activities qualify – a few are described below and we’ve also added a more comprehensive list at the end.

The great thing about UK R&D tax incentives is that they apply to any UK registered limited company in any sector – The Dyson Report on Innovation 2010 made this point saying:

“Of the various tax instruments available to government, R&D Tax Credits have the advantage that they seek to help companies that are themselves prepared to invest in R&D.

Government does not need to choose sectors or companies, with the result that R&D can be encouraged in the widest possible range of sectors, taking advantage of businesses’ own insights into likely breakthroughs”

While it’s sometimes easier to spot R&D being done by pioneering technology companies, there are many other areas where companies are able to benefit and the pay-outs can be significant.

A mini revolution in the food industry

There’s a mini revolution going on in the food industry with new producers coming into the marketplace supplying for example frozen vegan ready meals, vegan ‘cheese’, and a whole array of vegetable, nut and seed based products. Plus established producers are updating their recipes to reduce salt, sugar and additives to meet changing consumer demands. Similar things are happening in the drinks industry. They will all be undertaking qualifying R&D to develop their new or improve recipes and in some cases their manufacturing processes as well.

While my focus here is not technology it’s worth mentioning that food and drinks businesses are also increasingly being driven to embrace technology, to automate manufacturing and production methods and there will be significant qualifying R&D being undertaken as part of that.

Materials and packaging for a better environment

There’s also a lot of qualifying R&D being undertaken to develop new more environmentally friendly packaging materials, to replace or reduce our reliance on plastic and polystyrene.

I buy all-natural cosmetic products made with organic ingredients. I was intrigued to see that my last order was packed using biodegradable, extruded nodules made of a starch product. There was a note on the top saying the packaging is water soluble and wouldn’t harm you if you ate it, so it can be disposed of as food waste. It looked so like the polystyrene or plastic packing nodules we are used to seeing in mail orders items, that I hardly believed their claims. So I put a piece in water and sure enough it dissolved. Development of this starch based packing product would certainly have qualified as R&D for a tax credit cash payment or tax relief.

It’s not only the creation of new materials that qualifies as R&D. Things like the design of packaging and how it is assembled can also be qualifying R&D. For example the development of a new packaging system to improve shelf life for a food product, or to hold a product securely to prevent damage during transportation, would be qualifying R&D so long as the development was not a routine or obvious solution i.e. there was some experimentation involved to work out if it was feasible or how to achieve the desired outcome in practice.

Construction and engineering challenges

There is a significant level of R&D in the construction and engineering industries, much of which is still not recognised as R&D by those undertaking it. For example a company may be seeking to build something in a novel way or in a difficult physical environment – such as a waterlogged area or on an unstable foundation, so they develop a novel solution that was not obvious and therefore would be considered R&D for tax relief. Another example is the engineering of elements of a building to enable a modular construction method, such as metal fabricated stairways or balconies. In this case there could be R&D in arriving at a design that meets the architects brief while also complying with regulatory requirements and being easy to fit.

I’ve just touched on a few areas, below is a longer list. For companies with under 500 employees the benefits are generous paying out between 19% and 33% of relevant expenditure, on things such as staff salaries or sub-contractors costs, materials and energy consumed.

Please feel free to email us to check if you qualify. Or speak to our specialist R&D Tax Credits advisor Linda Eziquiel on 0771 9439 229.

Essential steps when acquiring a new business 3

May 5, 2019 By Peter Kroeger

Part 3 – What do you need to watch out for?

Back in March I looked at your strategic reasons for buying a business and in April I gave pointers on searching for a new business to acquire. This month, in the final part of our series, I will highlight some key areas that you need to consider before you make your final purchase. Follow these recommendations and you could avoid a variety of unnecessary pitfalls.

The main areas to consider are:

proper strategic thinking for an acquisition – be clear about your ‘why’, ‘what’, ‘who’, ‘where’ and ‘when’ and the distinctive benefits you hope to establish from an acquisition
preparation – sufficient and well thought-through preparation by the management team making the acquisition
finances – acquirer must be properly prepared financially
negotiating price – never pay too much, plan your negotiation strategy in advance
support – use experienced and practical professional advisors
resources – ensure that you have adequate resources allied to the acquisition process

Acquiring a business is firstly strategic, followed in short order by “people”, after which it is both a financial and a legal matter. Successful acquisitions always have all four of these pillars soundly in place.

What LGBA/HCBA Acquisition Planning advisors can do to assist your business. Real life experience, strategic advice and tactical support.

Assistance with what follows next – a Business Support Programme to help you implement and deliver the plans
Fund raising and acquisitions assistance
Developing the integration plan which is a pre-requisite to making the acquisition a success
And of course we can negotiate on your behalf and project manage the accountants, lawyers, tax experts and due diligence all the way through to completion

Please feel free to get in touch with me at peter.kroeger@lgba.co.uk or on 07904 766230.

Essential steps when acquiring a new business 2

March 31, 2019 By Peter Kroeger

Part 2 – Where do you start your search?

Last month I started by considering the strategic reasoning you need when buying a new business. This month, we shall consider how to optimise your new business search.

Having decided why you want to buy a business, summarise the base criteria:

the broad locations where you want the acquired company to be and also whether you would ideally want to move it to your own location.
the size of company – revenue, profits, assets etc and what you can afford.
produce a profile of the target company as well as a profile of your own company.

Then you need to start the research for companies that fit these criteria. Make a list of companies you know that:

Directly compete with you
Do what you do but are not direct competitors because they are in a different geography or a different niche
Have approached you for any reason in the past
You have partnered with

Then use Google searches to find similar companies to expand your search universe of companies that match your criteria:

approach UKTI to set up a project to find companies outside UK
source lists from research organisations (e.g. from Institute of Directors if you are a member)
approach the appropriate Trade Association for a list of members
talk to your personal and advisory networks and ask them to introduce prospective targets
approach advisory companies that specifically act for buyers – such as Langcliffe Merger Connect www.mergerconnect.co.uk or Chelsea Corporate www.chelseacorporate.com and engage them to assist in your search

What LGBA/HCBA Acquisition Planning advisors can do to assist your business. Real life experience, strategic advice and tactical support.

Assistance with what follows next – a Business Support Programme to help you implement and deliver the plans
Assist with developing the profile of the target and of your business
Perform the desk research

More to follow next time. Please feel free to get in touch with me at peter.kroeger@lgbusinessadvisors.co.uk or on 07904 766230 for more information.

See also:
Essential Steps When Acquiring a New Business
Part 1 – What is your strategic reasoning for acquiring a new business?

The Cost of Poor Strategy Execution – Can you afford it?

March 31, 2019 By Paul Fraine

I am often asked by clients what is the real cost of executing a strategy badly? In this short article, I will provide some highlights and lookouts on the implications of executing strategies poorly.

Good v Bad Strategy Execution Planning

Every business needs a plan or strategy whether you’re a global corporate or a £2m turnover single entity business. When we talk about strategy planning and execution, we are specifically referring to how a set of strategic objectives will be achieved. Strategy execution defines the overall approach and plans required to efficiently achieve the outcome. What then makes a good strategy execution plan versus a poor one?

A good strategy execution plan should be logically coherent, easy to understand and as simple as possible; it traceably aligns all activity to the company vision and objectives whilst providing visibility, purpose and clarity to the relevant stakeholders involved in execution of their tasks and responsibilities.

We sometimes observe business owners or leadership teams agreeing on a vision of where they want their organisation to be in the future but struggle with creating and then linking a detailed execution plan to their long-range objectives, which would otherwise enable a smooth and efficient transition to their desired end point. A further common mistake involves creating a vastly complex set of delivery activities which aren’t clearly linked to objectives or business vision and therefore fatigue the organisation and fail to deliver the outcomes efficiently.¹

Commercial Impact of Poor Strategy Execution

Setting a clear strategy at leadership level is important but executing it efficiently within your organisation is critical and can often be much more challenging. It is widely documented within leading business publications, Harvard Business Review, INSEAD, Wharton and McKinsey for example, that well over 50% of strategic implementations fail in execution and here are some of the reasons why: ²³⁴

Excessive change in strategic priorities
Lack of knowledge and experience
Acceptance of poor performance or failure to deliver on objectives
High levels of bureaucracy resulting in slowing down the process
Lack of delegation
Under resourced
Frequently missing deadlines and deliverables
Poor communication across stakeholders
Cultural resistance
Lack of monitoring and progress

This high failure rate can come at a significant cost to an organisation such as employee morale, brand damage or ultimately the demise of the business. However, in less extreme cases the commercial and financial implications fall in to two areas.

Failure to achieve expected top line revenue/benefit
Increased execution costs through poor planning and inefficient use of resources

Failure to achieve expected top line revenue/benefit

Failure to achieve budgeted top line revenue could have multiple impacts on an organisation. A shortfall or reduced top line revenue could result in restricted growth, cash flow issues, poor shareholder and employee confidence, long term impact to future business plans and credibility damage with banks and lending houses. Less cash in the business may also mean abandonment of other strategy planning which could have a deepening impact on business operations and future growth. Rationalisation and divestment can also be a consequence of missed or reducing revenues which can often take some time to recover from.

Increased execution costs through poor planning and inefficient use of resources

Strategy execution plans that stall due to poor organisation comes at a cost. Trying to turn around or realigning strategies that are not being executed correctly will undoubtedly increase execution costs as businesses spend additional time and resources, either reconsidering or completely re-planning their approach. Without proper monitoring, most organisations will revert to throwing more resources at failing strategic activity plans, which often compounds the issues rather than solving them as in most cases, resources aren’t the problem, it’s the ill-conceived plans that is often at the root of the problem.

In addition to the cost of failed strategies, the commercial impact is often compounded by the non-realisation of the intended strategy benefit. This additional hit can significantly increase the total cost to the business.

Summary

There are many ways to avoid the above pitfalls such as detailed planning and alignment, strong communication methods, tracking and tooling as well as engaging with professional and experienced resources. If you would like to discuss your approach to strategy planning and execution, please contact Paul Fraine by emailing paul.fraine@lgbusinessadvisors.co.uk or by calling 07889 600811.

Top tips to reduce business legal fees and prevent expensive disputes

March 3, 2019 By Tom Elek

Litigation should never be embarked on lightly. There is no such thing as a “clear-cut case”. Most lawyers will rarely give even the strongest case more than a 70% chance of success. There are a number of questions which you need to ask yourself before seeking to resolve a dispute by embarking on litigation:

Is the dispute one which you need to address? It is important to look at any dispute dispassionately and without emotion.
Have you looked at every possible way of resolving the dispute?
Can you afford to lose the case, which could involve you having to pay not only your own costs, but also a large portion of the other side’s costs?
Is there a significant disparity between the respective financial strengths of the 2 parties?
Will you be able to withstand the attacks you and your business will face from lawyers experienced in our adversarial legal system?
Can you afford the distraction that a lengthy court hearing could cause?

I will address each question:

Disputes can often be triggered by hostile personal relations. It is important to try and be objective and to avoid allowing feelings of personal animosity to influence the interaction between the parties.
Until fairly recently, commencing proceedings at the early stages of a dispute was considered a sensible strategic approach. However, the cost of issuing a Claim Form has increased significantly in Court fees alone with a claim in the High Court costing 5% of the amount claimed above £10,000(or 4.5% if issued online) up to a maximum of £10,000 for claims of £200,000 or over. Every possible way of resolving a dispute must therefore be considered before embarking on litigation.
The changes introduced by Lord Woolf in 1998 in the Civil Procedure Rules have also acted as a disincentive to anyone contemplating embarking on litigation. One of the cornerstones of these changes has been to encourage parties to a dispute to seek mediation at an early stage. Failure to do so can be penalised by adverse costs awards against any party refusing to consider mediation for no good reason, even in cases where such party has won his case.
Those with deeper pockets will not only be able to afford higher quality lawyers, although more expensive does not necessarily mean better, but more importantly have greater staying power. It is often difficult to predict how proceedings will progress and one has to expect the unexpected. Running out of funds in the middle of a case can be catastrophic, as one would probably have to pay the other side’s costs, in addition to one’s own, in order to pull out. It is also important to bear in mind that even if you are successful, it is unlikely that you will be able to recover more than 70% of your costs from the other side.
One should not underestimate the hostility that our legal system allows and to a certain extent encourages in our adversarial system. Being cross-examined by an experienced barrister is not something that should ever be taken lightly.
Being involved in litigation is time-consuming and distracting and can cause serious damage to small businesses where senior executives find themselves unable to give their companies all the attention that is needed.

Conclusion

Every dispute requires very careful consideration before embarking on litigation, whether you are the plaintiff or the defendant.
Every effort should be made to resolve a dispute at an early stage without resorting to the courts. This can often mean having “to swallow one’s pride”.
A carefully prepared letter can often nip a potential dispute in the bud. If this fails, try not to lose direct contact between the parties.
Sometimes bringing in a third party to act as a mediator on an informal basis can help avoid litigation.
Once solicitors become involved you must ensure that you receive a very clear indication of costs throughout the process and ensure that you receive regular progress reports. If possible give one person within your organisation the responsibility for acting as the point of contact with the solicitors on your behalf and ensure that such person has a clear understanding of how solicitors charge fees.
Always try to find a way to maintain contact the other side, either directly or through your solicitors.

The time when everyone was entitled to their day in court is long gone and the consequences of doing so now can have unexpected and damaging consequences. If you want to talk this through, why not contact Tom Elek by e-mailing tom.elek@hcbusinessadvisors.co.uk calling on 07768 772148.

Essential steps when acquiring a new business 1

March 3, 2019 By Peter Kroeger

Part 1 – What is your strategic reasoning for acquiring a business?

Why you want to buy a business, where to search and what to look out for.

To start with, it helps to be clear about why you are buying. Acquirers can have diverse motivations:

a carefully thought out strategy
opportunistic e.g. see a competitor of a failing business is up for sale
a belief that, by acquiring, you will be able to generate a value significantly greater and faster than the alternative of continuing organic growth.

Often, the expected benefits will include one or more from:

geographic expansion
customer base
customer spread, i.e. for a manufacturer a number of blue-chip customers, such that there is no undue reliance on a small number of customers
contract durations
repeat business patterns
skill-sets
technology
intellectual property rights
depth and quality of management
uniqueness and competitiveness of products and services
scalability of products and/or services
market position and brand
systems and processes, particularly relating to winning new business
distribution
quality of service
the “halo” effect, the extra revenues and profits that can be gained from e.g. cross selling to one another’s customers or improved supply etc
to build the business in advance of selling it.

For each of these, the key question is – “what would it cost and how long would it take to add these (the “extra” criteria that you have that means something to us) to our own business ourselves, organically?” The right Acquirer, for whom the Seller provides the most amount of value, may well be persuaded to share some of the value with the Seller and reflect that in the purchase price.

What LGBA/HCBA Acquisition Planning advisors can do to assist your business. Real life experience, strategic advice and tactical support.

Develop the value enhancing strategy
Action-focused Business Planning
Assistance with what follows next – a Business Support Programme to help you implement and deliver the plans
Fund raising and acquisitions assistance

Next month I’ll share my top tips on searching for a new business to acquire. Please feel free to get in touch with me at peter.kroeger@lgbusinessadvisors.co.uk or on 07904 766230 if you’d like to find out more.

How to identify and manage risks in your business

March 3, 2019 By Edward Tudor

When you start a business you need to be aware of the risks you are taking.

Government statistics show that 97% of new start-up businesses fail within 3 years.

To prevent this from happening to your business you need to understand RISK.

By understanding Risk you can apply yourself to the areas of the business which are really important for the survival of the business.

Risk Management is a process of analysing what can go wrong with the business and what can be done to alleviate the problem in a cost-effective manner.

Entrepreneurs need to be familiar with the likely occurrence of a risk and the consequences of such risks if they happen.

Please see the diagram below:

Quadrant 1 risks have the least impact and the least consequences to the business, whereas Quadrant 4 risks have the most damaging consequences and the highest likelihood of occurring.

Therefore all risks need to be mitigated if the business is to be successful.

Let’s discuss the four Quadrants:

Quadrant 1: Minimal Risks

Risks in this quadrant need minimal attention because they will have the least impact on your business.

e.g. The light bulb in the stock room fails. You can replace the bulb at any time, but your shop can continue to operate.

The cost of the replacement bulb and fitting it is minimal and the business can continue even with some inconvenience.

Quadrant 2: Irritating Risks

The risks in this quadrant are ones you need to be prepared for.

e.g. You are giving a presentation and when you arrive at the venue your laptop with your presentation on will not boot up.

The Laptop can be repaired but there could be a delay in giving your presentation.

The solution is to have the presentation stored on a hard drive or memory stick that you take with you or in the cloud so that you can run it on another computer.

You could also print the slides as handouts and deliver your presentation from this printed copy.

The solutions here are having a “Plan B”

Have a set of procedures or a checklist to ensure that you have everything you need to complete your task.Ensure that you always have spare ink cartridges especially when you have an important document to print.

I order ink cartridges for my printer in threes and I re-order when I put the second cartridge in. This means I always have a spare cartridge.

Quadrant 3: Insurable Risks

There are risks that can and should be covered by insurance policies. Underwriting companies can provide specialist insurance for many risks.

One of my clients is a Tree Surgeon and therefore he has a policy which covers the damage if a tree should come down not as planned.

Usually the Risks in this Quadrant can be costly. You should make sure you hold all the policies you need to be legal:

General Liability Insurance
Property Insurance
Business Contents
Business Equipment away from the premises (Laptops, mobile phones)
Business Interruption Insurance
Public/Product Liability
Employers Liability (Compulsory if you employ staff)
Professional Indemnity Insurance

These are the usual policies required for a UK business. However if you are in a specialist trade then contact your Professional or Trade body to ensure you have all of the insurances you need.

Quadrant 4: Damaging Risks

These are the Risks which could close your business.

Many of these Risks look non-threatening. If these unmitigated risks are allowed to accumulate then even a FTSE 100 company could be brought down.

The consequences of these risks are especially dangerous to a new start-up or a small business.

Examples of Damaging Risks are:-.

Unidentified Market need
Unimplemented Innovation
Unforeseen Costs
Losing to the Competition
Company mismanagement
Not Managing Credit Control and Cashflow, which can lead to Bankruptcy.

Anything that you think will be detrimental to your business is Damaging RISK.

If you ignore these risks you could lose your business.

We know that in order to survive as a business and not be one of the 97%, we need to mitigate risks.

We know there are many risks that have to be dealt with and some may be difficult to understand.

However, we at Home Counties Business Advisors have the skills and experience to help you identify and overcome risks, especially in that all important 4^th Quadrant. For more advice on managing risks in your business, why not get in touch with Edward.tudor@hcbusinessadvisors.co.uk for an exploratory meeting or phone call.

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