WHILE on a macro level the global outlook for 2016 looks decidedly uncertain, on a micro level the local economy in Northamptonshire is pretty resilient. We are in a fantastic location, have a diverse local economy and a flexible and hard working skills base. So what could possibly go wrong? The answer, as always, is events that are outside of your control.
The two most important factors that come into play are, obviously, customers and suppliers. One significant bad debt, or a crucial supplier ceasing trading can dramatically change the outlook. It is only then that you may discover some awkward truths:
* Are your trading terms and processes what you think they are? Or are you trading on your customers or suppliers terms and conditions? If you are, when things go wrong, it won’t be you that is protected.
* Have you got the right financial support in place from your bank? Have you got an adequate overdraft facility that covers the risks of a few upsets? The time to ask for the facility is when you don’t need it.
* If you sub-contract work which involves intellectual property rights (e.g. designs, photography etc.) being created for you, have you ensured that the sub-contractor assigns the rights to those designs to you? If you don’t, they still own the rights, as the creator. If they become insolvent you will have an awkward conversation with their liquidator or trustee in bankruptcy.
As the New Year starts, it is a good time to examine some of the basics that underpin your business, and make sure that they are as robust as you think they are. Just because everything works when times are good doesn’t mean they’ll still function when a problem emerges. As always, there is plenty of professional help in the County which can be of use for an independent review of these issues.
For further help contact Gerald Couldrake on 01604 258011 or email
