New Clay Shaw Butler 'Looking after business' column


Looking after business, the new business page column from the Carmarthen Journal
By Nigel Roberts, finance and banking specialist with Carmarthen-based accountants Clay Shaw Butler

All West Wales companies – from award winners to new start-ups – will appreciate that there are many factors ensuring success in today’s economy.
A good quality product, enthusiasm, enterprise and innovation will be among the factors which will play in a company’s favour. Also central will be a company’s relationship with its bankers.
Here, then are my Top 10 tips for making sure have a good relationship with your bankers and fund providers –
1. For your product, research the market undertaking the necessary diligence.
2. Use your bank manager or business consultant as a sounding board for new ideas. Their input at an early stage might save time later.
3. Minimise your borrowing requirement by introducing cash. Family money may also be an option. It’s less formal - and they will not in most cases research your business! It is worth considering that family agreements are formalised.
4. You can also minimise your borrowing requirement by managing your existing cashflow more effectively. Can terms of trade be improved and debtors managed more efficiently?
5. Structure a robust business plan and obtain your accountant's input on any financial projections etc.
6. Do a SWOT analysis on your business (Strengths/Weaknesses/Opportunities/Threats). For the threats and weaknesses what is your contingency and remedy? Remember your business plan will be challenged by your Bank Manager if you require additional or new funding!
7. Investigate all avenues of grant funding and soft loans. Finance Wales offer micro-loans together with Carmarthenshire and Pembrokeshire Lotteries.
8. Affordability of any loan debt is paramount. Greater profitability may be needed for an existing business to cover increased loan repayments.
9. Have your security proposals available. Make sure all parties to the security are agreeable to any arrangement.
10. Have an exit strategy if the project does not succeed.

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