• Skip to main content
  • Skip to footer
SBCA Chartered Accountants

SBCA Chartered Accountants

Chartered Accountants in Preston

Call Us Now 01772 204102

  • Facebook
  • LinkedIn
  • Twitter
  • Accountancy & Tax
  • Business Growth
  • Private Wealth
  • Who We Help
  • About
  • Our Team
  • Client Testimonials
  • Contact
  • Client Login

Business risk is increasing

COVID disruption has added a further layer to the business risk cake. Do you know how many of your customers are at risk of failure?

10th August 2021 by Chris Bond

COVID disruption has added a further layer to the business risk cake. Do you know how many of your customers are at risk of failure?

It is estimated that between 20% and 30% of small businesses, and a sprinkling of larger concerns, will cease to trade as we start to emerge from COVID lockdown; if indeed, that is what the politicians and scientists confirm will happen from 19 July.

Additionally, at the end of September, the major source of support for employment, the furlough scheme, is coming to an end. We should expect a significant rise in unemployment following that change.

Which is why we recommend that all businesses undertake a re-assessment of business risk on multiple levels so that services and goods supplied are paid for and bad debts kept to a minimum.

Initially, we suggest you divide your customers into Can Pay, Cannot Pay (they have cashflow issues) and will not pay (bad payers) categories.

Secondly, rank customers as T (transactional) or R (relationship). Transactional customers are concerned about price, quantity, and delivery, i.e., always want more for less. Transactional behaviour is the default position for many businesses in a crisis. Relationship clients are more open to conversations about the value of the goods or services you supply. They will enjoy their business relationship with you and be loyal customers.

Last of all, ranked customers 1 (low) to 5 (high) for risk of failure.

Using this approach, we would like to offer you our support to undertake a formal risk assessment of your customers.

This will enable you to better manage risk with eyes wide open rather than stumbling into situations where work is undertaken, or goods supplied in areas where there are increasing risks and where customers may not have the inclination or resources to pay.

If you would like to undertake a formal review of business risk, but do not know where to start, pick up the phone, we can help.

Category iconBusiness Management,  Team

Xero Gold Partners
ICAEW Chartered Accountants
Clear transparent pricing champions

Footer

Get Your Free Copy of Chris’s Book

Reflect Dream Do

Quick Links

  • Get in touch
  • Book Your Discovery Call
  • Client Testimonials
  • Blog
  • Meet Our Amazing Team
  • Work for us
  • Time. Money. Headspace.

Get Your Free Tax Planning Checklist

Business Tax Planning Checklist

Join The Preston Business Community

Preston Business Community

The Latest From Our Blog

Tax Time

Tax Time – Dates for May 2022

21st April 2022 By Chris Bond

THE UPS AND DOWNS OF SPRING STATEMENT 2022

The ups and downs of spring statement 2022

24th March 2022 By Chris Bond

Tax Time

Tax Time – Dates for April 2022

21st March 2022 By Chris Bond

Read more from the blog

We use telephone tracking numbers to link a user’s call to the marketing channel that they originated from. This is done using cookies, you can choose to decline cookies using your browser settings if you would prefer not to be tracked. We may record calls for training or monitoring purposes.

This firm is not authorised under the Financial Services and Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services to clients because we are members of the Institute of Chartered Accountants in England and Wales. We can provide these investment services if they are an incidental part of the professional services we have been engaged to provide.

Copyright © 2022 SBCA Chartered Accountants · Privacy Policy · Terms & Conditions · Site Design by Simply Smarter Marketing