Thinking growth? Think planning too

Dominique Upton.
Dominique Upton.
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There is an air of optimism in the economy.

Optimism promotes confidence and confidence leads to investment.

This is particularly encouraging given that there are quite a few uncertainties in the global marketplace.

These include the general slowdown in emerging economies, particularly China, and its impact on the demand for our exports.

There is also the issue of Brexit. What is worse than being in or out of the EU is being unsure.

Stability is key to strong trading.

And then there is Mr Trump – no I’m not referring to one of the Mr Men characters – could he really become the next US President?

Unlikely, but it’s all a bit unnerving.

Despite this, many manufacturers are doing well, no doubt helped by a readily available supply of finance which a few years ago did not exist.

Consumer demand in the domestic market continues to be a key driver in our economy.

If you run a business and are optimistic that you can grow, you need to plan.

Growing a business presents its challenges.

It stretches staff resources, both in terms of the right number of staff and mix of skillsets.

Financial planning is obviously crucial. Investing in the right capital equipment can improve reliability, reduce downtime, improve productivity, swell profitability and made your products more competitive.

There are numerous asset finance products available to spread the cost over the life of the asset.

Choosing the right finance deal can be as important as your choice of equipment so it is best to take professional help.

Once you have the staff and equipment to process your orders, it is essential that you don’t run out of cash flow – it can happen to the largest quoted companies.

If your company doesn’t have the resource to produce financial projections in-house, involve your accountant.

Invoice discounting or factoring offer a flexible answer to funding cash flow which will grow with your business.

Larger companies may consider asset based lending which combines invoice finance with other assets, such as property, plant and machinery and even stock.

Up to 90 per cent of the equity in these assets can be drawn on to provide additional working capital.

So if you are thinking growth, think planning at an early stage.