Insight from our experts

Wise decisions in the face of uncertainty

Graham Rusling

Graham Rusling
Quick Facts Name: Graham Rusling
Company: Barclays Commercial Bank
Position: Managing Director of Business Support & Recoveries

Graham Rusling, Manager Director of Business Support & Recoveries, Barclays Commercial Bank provides insight into the value of making tough decisions early.

Making difficult decisions early when the going gets tough can often make the difference between surviving and going out of business. In Business Support we have a dedicated team of specialists that work with customers experiencing the first signs of difficulties to get back to a stable financial position. As the economy has deteriorated, we have observed at first hand the importance of taking early and decisive decisions which anticipate risks and opportunities.

Sectors at the forefront of the economic downturn that face tough decisions - BDO Stoy Hayward predicts a surge in business failures in 2009*: up 136% in Real Estate & Construction, 65% in Manufacturing, 37% in Transportation, 25% in Retail. Assessing both the drivers of success and risks to your business and ultimately, laserfocus in decision making is crucial. A struggling loss-making wine producer in South England and a fast-growing profitable engineering services company are different in most respects but the immediate priorities when facing a cash crisis are similar: tough decisions are required by the owners to secure the firm’s cash position first and then improve profitability. Having the right information and advice is crucial in making these decisions.

Businesses with a strong management that is ready to make early decisions are much better placed to see through the current economic environment. In these conditions, opportunities for revenue growth are often fewer than in recent years and the importance of cost control is fundamental. We see that many customers have given too much focus to the top line and developing sales whilst profit and cash flow analysis and forecasting are often neglected. Now is the time to shore up these fundamentals and make sure that you take appropriate action.

At Barclays Commercial Bank, we work closely with KPMG to help you identify the short term steps you can take to see you through this time of upheaval.

Download their tips for successful cost reduction here.

For a step by step guide to understand how to assess the current performance of your business, click here to access our simple business healthchecks.

*© BDO Stoy Hayward LLP December 2008. Source: BDO Stoy Hayward's Industry Watch Winter 2008 brochure.