EBA Consulting Ltd

"Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius and a lot of courage to move in the opposite direction." Albert Einstein (1879-1955)

Tel: 01554 890300

Company Insolvencies fell by 10%

Comparing the first quarter of 2003 against 2002, the DTI's figures show the number of companies being recorded as insolvent fell by 10% to just over 4000 companies.

It is believed the fall is down to the changing attitude towards business failure and reflects a willingness to restructure debt rather than enter into formal insolvency procedures.

The number of receiverships fell by 31% in the first quarter of 2003 compared to the same period a year ago. A greater tolerance to restructure is demonstrated by the 3% increase in formal arrangements such as administrations and company voluntary arrangements.

Many businesses often leave it to the last stages before attempting to restructure. By doing so they further risk the relationships with creditors and customers alike.

If businesses find themselves in an insolvent position or are struggling with a cash flow situation it often helps to stand back and look at the situation rationally and independently. There are often solutions out there which the business would not come across in their day to day operation.

If you need assistance with this contact us now before it's too late

It is vital businesses, especially the SME sector gain access to key areas of assistance to help them in their development process.

Succession Planning

Recent research has shown that 60 per cent of small business owners expect to be working full time into their 60s, and some way beyond that age.

A survey of 1,000 business people showed that the older the entrepreneur, the longer they expected to have to work and many owners were unsure what would happen to their business when they retired.

Those under the age of 40 expected in the main to be able to retire from their business within 10 to 15 years.

However as entrepreneurs aged, they set their sights lower, with the majority of entrepreneurs over the age of 40 saying that they expected to retire between 60 and 78.

The issue of succession was a key one for entrepreneurs.

Only 14% said that they will pass on their business to a family member while 13% of small business owners said that, in the end, they would have to close their business down.

The need for early succession planning must not be under-estimated.

If selling the business is a preferred option then it must be realised that it does not take place overnight. Generally the enthusiasm for growth and investment can diminish which potentially reduces the value of the business.

If you need assistance with this contact us now before it's too late

Trading Status

Weather you are starting up or an established business the decision to operate as a sole-trader, partnership, limited liability partnership or limited company is always a difficult one.

The issue involves many factors, including your tax position, who else is involved and the kind of business you are in.

The main benefit of trading as a limited company is protection if anything goes wrong.

However, it involves more paperwork and legal responsibilities, and the tax situation can be complex and specific to your circumstances. Although recent changes in the budget do improve tax liability.

If you need assistance with this contact us now before it's too late