How recession proof is your business?

13 Nov 2017

Posted by Rachel Johnson

The WOW Company

Survey commissioned and published by The Wow Company.

Many​ ​UK​ ​agencies​ ​aren't​ ​prepared​ ​for​ ​a​ ​recession,​ ​with​ ​those​ ​not​ ​adequately​ ​focused on​ ​their​ ​infrastructure​ ​at​ ​risk​ ​of​ ​going​ ​bust,​ ​a​ ​report​ ​by​ ​leading​ ​accountancy​ ​firm,​ ​The Wow​ ​Company​ ​has​ ​revealed.

The ‘How recession-proof is your business’ survey tests the resilience of organisations across the country, and its findings have shown that a large proportion of business leaders remain vulnerable to a downturn. As economic uncertainty continues, 15% of owners have admitted that they only have enough cash to cover themselves for a single month of overheads, should trade take an unexpected dip.

"The current state of play is quite alarming for small firms," said Peter Czapp, Co-founder of The Wow Company. "Many owners are just one bit of bad news away from going out of business completely." Peter Czapp, Co-founder of The Wow Company

“One in five firms aren’t making any profit, and 15% are living on the edge of their personal finances, so the concern reflected in the report is understandable”.

While there are some eye-catching statistics within the report, it also contains practical suggestions for things that business owners can do differently to increase their chances of success, including some immediate steps that can be taken to safeguard businesses moving forward.

There’s also good news, as small businesses are getting paid quicker than ever before. It now takes the average business 27 days to get paid. Coupling reduced payment terms with utilising software, and those average days reduce to just 17.

The survey is free to download to all BIMA Members here.

"This report highlights business fundamentals that are easy to forget as businesses chase growth," added Czapp. "If you follow the guidance contained in the report, you’ll be in the best possible shape to thrive whatever the economic conditions."

Rachel Johnson
Posted by Rachel Johnson

Rachel has recently joined BIMA having worked for more than 20 years in the world of Marketing. Rachel has many impressive client, charity and agency-side results to her credit and stories to tell. As both a team player and independent advisor, Rachel loves to see the bigger picture and is a strong strategic thinker. She has led ambitious projects for start-ups, worked alongside growing businesses and has been fortunate to work with some of the UK’s most respected and renowned agencies. A self-motivated original thinker, Rachel is also an extremely able marketer. She brings out the best in people at all levels. Her wealth of transferable skills includes project management – often with direct budgetary control - results-driven commercial awareness, proven networking strengths, digital marketing expertise and broad IT literacy. However, her achievements do not end there! In her spare time, she makes full-use of her Cumbrian home-town environment, walking, biking and running, and spending time as an enthusiastic side-line rugby and football mum for her two boys – Louie and Harley.

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