14 February 2020: A company with a long trading history in the Milton Keynes area was recently referred to us due to mounting cash flow issues. During an initial meeting with us it became apparent that a liquidation process was, unfortunately, the most suitable way forward for them. So, what were the lessons to be reflected upon?
The business was a retailer that had served the local area for many years. Recently however, increased competition had made it harder for the business to remain viable. Not surprisingly, as is so often the case when a company has traded for such a long period, the owners, staff and local residents were saddened by the loss of the business, with strong emotional attachments having been created over time.
Discussions with the directors highlighted issues which we often encounter during consultations with clients, which were; finding the right trading location for a business and how unforeseen circumstances can pull the rug from under the feet of directors. In this matter a local shopping centre development was a significant factor in drawing both customers and general footfall away from the business. In other instances, smaller businesses have advised us of a national company opening up a branch within the same street/area and the huge negative impact on their turnover.
Obviously simply upping sticks and moving is not always a simple solution, in fact, it is often quite a complex and time consuming endeavour to find new premises and re-locate while also dealing with dilapidations costs at your current premises. However, the future of your local area, specifically with regard to the planning for business locations and your place within them, could be a crucial aspect of your future planning and trading projections. We understand that there are many pressing day to day matters taking up your valuable time but an awareness of local planning applications, the local government vision for your area and other sources of information, such as on-line community groups can help you to stay informed and best prepare for the future.
If changes in your local trading environment has led to cash flow or other financial issues for your business, here at BRI we always seek to provide the right advice first time every time regardless of the fee outcome for us. Hopefully helping to get your business ‘there’, wherever the location.