Planning is an unnatural process

Planning quote from Harvey Jones –

Planning is an unnatural process; it is much more fun to do something.  And the nicest thing about not planning is that failure comes as a complete surprise rather than being preceded by a period of worry and depression.

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Keep your cashflow under control(5)

This is the fifth and last of the series:

9. Review wages and salaries – In times where cash is tight, these (usually) monthly payments are strain on cashflow.

10. Consider invoice finance – These facilities can bring in a value of up to 90 per cent issued invoices – but it has a cost. It can assist as the cashflow income then grows in line with sales, and bridges the gap between issuing an invoice and receiving payment.

These are my thoughts and information from various other sources. Your comments or observations are welcome

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Keep your cashflow under control (4)

This is the fourth of the series:

7. Take precautions – consider taking out insurance to cover all trading with a large or doubtful customers or even against individual invoices.

8. Negotiate or re-negotiate credit terms with suppliers – Ask for early settlement discounts (if cash is available) and try to split annual costs into monthly payments. You will probably find this easier than paying a large bill at the end of the year. What would happen to your business if a supplier failed? Too much reliance on any one supplier could leave you extremely vulnerable. Use credit checks and find alternate source(s).

These are my thoughts and information from various other sources. Your comments or observations are welcome.

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Keep your cashflow under control (3)

This is the third of the series:

5. Invoice promptly – issue them as soon as is practical. Soon after they are issued contact the customer by phone or email ensuring they have the invoice in their system and that they have no problems with the supply – record this. Get them used to paying on time. Remember “a sale is only valid…”

6. Ensure your systems advise you of late customer payments – keep an eye on your debtors’ days (trade debtors’ ÷ sales for the previous 12 months) × 365). An increase could indicate a credit control issue.

These are my thoughts and information from various other sources. Your comments or observations are welcome.

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Keep your cashflow under control (2)

This is the second of the series:

3. Keep costs down – Review all your cost items (including products and energy) and relate this to efficiency. I have read that turning off one PC overnight can save over £50 a year.

4. Run a credit check on customers and potential customers – look at the credit histories with a view to eliminating late or non-payment. Try to instil in your staff the thought that ‘a sale is only valid when the cash is in the bank’. Before accepting an order ensure the customer/potential customer accepts your payment terms – in writing. It is also essential to enforce your payment terms and if a customer doesn’t pay, put them on a stop.

These are my thoughts and information from various other sources. Your comments or observations are welcome.

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Keep your cashflow under control

It has been said before by many, but it is worth repeating – ‘Sales are flattery, profits are sanity but cash is king’.

It has been reported that 30 per cent of companies in the South East still suffer from cashflow issues.

It is my plan to enter a series of guidelines which, if followed will help to ensure a business’s liquidity remains robust. The first two are:

1. Plan your Cashflow year – If your business experiences peaks and troughs in demand. Prepare for these and put in place measures to ensure your cashflow reflects the changes.

2. Don’t bulk buy – hold as little stock as you can and turn it over quickly. Agree with your suppliers a right of return of unsold stock. Look at getting stock on consignment (you do not pay before it is sold). Can you get your suppliers to deliver to your customers on your behalf? Careful planning should eliminate this potential drain on cash.

These are my thoughts and information from various other sources. Your comments or observations are welcome.

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Could your business survive an increase in interest rates?

I was discussing this with a Turnaround colleague and he wrote this to me which I thought you may find of interest.

When will the next increase in interest rates come?   Soon?   Six months?   Twelve months?

Interest rates generally rise and fall gently over a period of time.   Over the last 30 years they have followed a steady downward trend.   In 1981, Base Rate of 12 per cent was considered to be low, in 1988 7.5 per cent was a low point and it fell further to 5 per cent in 1999.   Now we are at 0.5 per cent so the next movement is likely to be up.

How would that affect the interest you are charged by your bank?   If you are borrowing £250,000 and you pay 3 per cent over Base Rate, you will be paying £8,750 each year in interest charges.   If Base Rate increases to the low point of 3.75 per cent in 2003, you will be paying £8,125 more each year – almost double your current payments.   And if it goes back to 5 per cent …. £11,250 will disappear from your bottom line!

Where will the money come from?   Price increases?   Not so sure.   More sales?   Which customers will buy more from you?   Will your customers survive an increase in interest rates?

If you recognise the problem you could face and would welcome my advice, do contact me at barry@barryrthill.co.uk.    TGBA (Turnaround Group Business Advisors) is a nationwide group of experienced business professionals who have guided many companies through challenging times.

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Media Release 2012 Games

Wednesday, 10 August

Immediate release

Media release

All routes lead to London 2012: Games transport website launched to help spectators plan how they will travel next summer

A one-stop travel shop that enables London 2012 spectators to plan their routes a year ahead of the Games before booking their travel has been launched.

The Olympic Delivery Authority (ODA) is encouraging spectators to start planning their journeys to venues now that event tickets have been allocated, with Games-time travel tickets on sale 12 months in advance of next summer.

The online London 2012 spectator journey planner and travel pages – www.london2012.com/travel – marks the first time such a comprehensive travel tool has been specifically created for an Olympic and Paralympic Games.

It will help Games ticket holders plot their routes to venues from anywhere in Great Britain by rail, coach, bus, river or Tube. It will also detail routes for cycling and walking, and from early next year will allow users to plan their journeys by car to Games park-and-ride and Blue Badge parking sites. Those with accessibility requirements will be able to plan the most suitable routes through the website, such as stations with lifts or ramps.

After selecting their chosen travel modes and routes, spectators are then linked directly to the relevant travel provider to purchase their travel tickets.

The online tool was created in partnership between the ODA, London 2012 Organising Committee (LOCOG), Department for Transport (DfT) and official Games technology partner ATOS.

Hugh Sumner, ODA Director of Transport, said: “The nations’ transport networks will be extremely busy on routes leading to Games venues next summer and we have worked closely with travel providers to ensure people will be able to get to their events while maintaining background services.

“The next step is for spectators to start planning their journeys and booking their travel now they know what event tickets they have got. The creation of the spectator journey planner will mean people are given all the options before making their choice.”

LOCOG Chair Seb Coe said: “Getting spectators to events on time and back home again is going to make a huge difference to how people remember the Games in years to come. Next summer will be incredibly busy, and as much as possible is being done to make London 2012 a public transport Games. This spectator journey planner will be a really useful tool and help people decide on the best ways of travelling next summer.”

Transport Minister Norman Baker said: “The last thing any spectator wants is a sprint finish to get to the venue in time. This tool will give people the best route and a realistic idea of how long it will take – I’d urge people to use it to ensure their hard won Olympic ticket doesn’t go to waste.”

Paralympian and Transport for London Board member Baroness Tanni GreyThompson said: “I fully welcome the addition of a journey planner specifically for the Games, as it will help spectators plan well ahead of their events and takes into account a range of different transport modes available. The fact that the website also gives information about which stations are wheelchair-friendly means that everyone will be able to take advantage of the website.”

The spectator journey planner will be similar to existing online journey planners but with added benefits for Games spectators. It will provide:

  • Predicted journey times to and from Games venues from anywhere in Great Britain, including an allowance for security checking at venues.
  • Predicted walking and cycling time to and from recommended stations to Games venues.
  • Timetable information up to a year before the Games begin to allow Games ticket holders to plan their travel.
  • Links to travel booking sites (such as 2012 Games coach and rail services) to enable Games ticket holders to purchase travel tickets up to a year in advance of travel.
  • Recommended routes to make journeys as simple as possible, avoiding overcrowded stations and sections of line.

Notes to editors:

–          The spectator journey planner can be accessed at: www.london2012.com/travel

–          Some local transport timetables for travel to the Games, including bus schedules, will be provisional from July 2011.  Spectators will still be able to plan and book their travel, but it is advisable that they check and, where necessary, adapt journeys closer to the Games.

–          The spectator journey planner provides information for spectators requiring accessible journey plans, including level access and assistance at stations.

–          Spectators with a ticket for a Games event in London will receive a one-day Games Travelcard for the day of that event valid within zones 1 to 9. This includes London Underground, London Overground, Docklands Light Railway, buses, trams and National Rail services.

–          Spectators with event tickets to venues around London – Eton Dorney (Rowing), Lee Valley White Water Centre (Canoe Slalom) and Hadleigh Farm (Mountain Biking) – will also receive a Travelcard, and will be able to travel on National Rail between London and the recommended stations for those venues at no additional charge.

Transport operators

The London 2012 transport operators are:

Rail:

–          2012 Games train service (Association of Train Operating Companies)

www.nationalrailgamestravel.co.uk

Coach, park-and-ride and Blue Badge:

–          2012 Games coach service/  2012 Games park-and-ride service/  2012 Games accessible transport services (First Group) www.firstgroupgamestravel.co.uk

River:

–          2012 Games river tour service (City Cruises and Thames river services)

www.citycruisesgamestravel.co.uk

–          2012 Games river bus express (Thames Clipper)

https://booking.thamesclippers.com/gamestravel

–          2012 Games Eton Dorney river service (French Brothers) www.frenchbrothers.co.uk/gamestravel

–          2012 Games canal service

http://www.water-chariots.co.uk/gamestravel

-­ Ends –

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Insolvency

Figures published by the Insolvency Service, show the number of company liquidations is again on the rise.

Following a fall in company liquidations during 2010, in the first quarter of 2011 there were 4,121 company liquidations, up 3.7% on the final three months of 2010 and 2.1% higher than the same period a year ago.

In the same period 1,314 businesses went into receivership or administration, or entered into company voluntary arrangements – all higher compared with the previous three months, although down 2.2% cent on the same period a year ago.

This follows an encouraging 2010 in which company liquidations fell by 16% and receiverships, administrations and company voluntary arrangements fell by 23% compared to 2009.

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A dramatic increase in the Time To Pay (TTP) refusal rate (HMRC)

New HMRC figures show a dramatic increase in the Time To Pay (TTP) refusal rate, alongside a drop in demand and ongoing concerns about the way the service operates.

The percentage of TTP requests refused during the first quarter of 2011 ws 9.3%, compared with 2009 and 2010 when the refusal rate was just 2.7% and 6% respectively.

Comment by

robertlovell in Tax on Fri, 06/05/2011 – 12:43

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