How are you doing?
No, seriously, how are you and your business doing?
We ask because we have spent time over the past week researching the desperate state of businesses, and the alarming headline that keeps appearing is this:
Small & Medium Sized Businesses Are In Distress: Insolvency Is Looming.
Which leads us to ask, how are you and your business really doing?
Do you secretly need help like so many other business owners in the UK?
4,187 Companies Made Insolvent Since January
In the first quarter, 4,187 companies became insolvent. This figure has risen by 6% compared to the previous quarter.
The alarming numbers keep coming, with nearly half a million businesses claiming to be in significant distress. This is often a sign of looming insolvency.
These were the findings from The Insolvency Service’s recent studies. Construction, Admin and Retail were the sectors most affected by insolvency this year.
The reason seems to be largely down to higher wages and auto enrolment pension costs:
“These latest figures show the immense strain that small businesses are currently under with rising employment costs and unfair business rates as well as significant uncertainty as a result of the Brexit process.”
– Mike Cherry, Chairman Of The Federation For Small Businesses
The total number of insolvencies are at their highest since 2014.
Half A Million Owners In Significant Distress
The figure of over 400,000 businesses being in significant distress is often the step before insolvency. This means a huge amount of UK businesses are stuck between a rock and a hard place.
Owners are deferring major business decision and customers aren’t willing to spend on big money purchases, which is leaving businesses in serious problems.
So… How Are You Doing?
After reading this blog – we have to ask: Does it resonate with you?
Do you feel some of that distress, or the uncertainty about your business’ future?
Often, the application for one of our business blogs might be: keep on going!
However this week, that’s not the case.
If you feel a sense of concern about the future of your business, or insolvency is looming, our advice is: Please seek help.
If you’re in desperate need we’d love to hear from you. We want to be more that accountants who deal with the numbers, we want to better support you through this difficult time and help point you to changes that might improve your business model.
Don’t suffer in silence and hope it will all go away. Talk and take action, today.
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