NORTH WEST SMALL BUSINESS FIVE TIMES MORE LIKELY TO CONSULT PEERS THAN BANK

HAINES WATTS

CHARTERED ACCOUNTANTS

PRESS RELEASE

September 16, 2010.

NORTH WEST SMALL BUSINESS FIVE TIMES MORE LIKELY TO CONSULT PEERS THAN BANK.

Video here.

Photos here.

Only around a tenth of North West small business owners would consult their banks when making an investment or “sense checking” business decisions, with more than half saying they’d speak with their peers instead.

That’s one of several surprising findings from a survey by UK top-20 accountants Haines Watts that indicates there’s a new financial world order when it comes to who owner-managers rely upon for business advice.

Peers are most likely to be consulted (53%), followed by accountants (49%), friends and family (22%), banks, (10%) management consultants (4.5%) and lawyers (4%).

“The banks used to have a vast range of experience with some of their managers, and businesses obviously relied upon that. But some of those experienced people have been lost from the system, and they seem to be heading for a more risk-averse approach, and the link between bank and customers seems to have gone,” said David Fort, partner at UK top 20 chartered accountancy firm Haines Watts in Manchester and Preston. (Watch video interview)

“There are now two key groups that business owners consult: one is their peers – they look for advice and ideas from other business men – and the other is accountants, like us, who understand their business and can be relied upon to give an external view.

“Historically, small business relied upon bank managers, but in recent times there’s been a growing concern that banks have become more systemised and are losing that contact with their clients.”

The survey indicates that lawyers have lost their one-time role as trusted business advisers, with just 3.97% of business owners saying they would go to them to benchmark or “sense check” business decisions.

Small owner-managed businesses are the powerhouse of the UK economy: of the 4.7 million businesses in the UK, 99.3% are small firms with fewer than 50 employees.

Of the 8,700 owner-managed businesses invited to take the Haines Watts Business Owner Survey, 645 responded giving a response rate of 7.4%. A selection of business owners were further invited to take part in in-depth interviews.

Haines Watts is a UK top 20 chartered accountancy firm specialising in the owner-managed sector, providing a broad range of services out of its 50 offices. The firm has 80 years experience and 30,000 clients.

Ends

Further information:

Iain Macauley

im@pressrelations.co.uk

07788 978800

www.hwca.com

http://www.hwca.com/offices/accountants-north-west.php

SURVEY: BATTLING NORTH WEST OWNER-MANAGERS DEFY “DESTRUCTIVE COST-CUTTING” TO STAY ON THEIR FEET

HAINES WATTS

PRESS RELEASE

September 8, 2010.

SURVEY: BATTLING NORTH WEST OWNER-MANAGERS DEFY “DESTRUCTIVE COST-CUTTING” TO STAY ON THEIR FEET.

Photos here.

A perfect financial storm of destructive cost-cutting, reduction of credit facilities, bank demands for personal guarantees and slow payment by public bodies is putting the engine room of the North West’s economy under enormous hidden pressure.

“99% of businesses in the North West of England employ fewer than 50 people and, boy, are they gathering scar tissue at the moment – but they’re battling through, staying on their feet, and should be proud of themselves,” said David Fort, partner at UK top 20 chartered accountancy firm Haines Watts in Manchester and Preston.

“Government stats may be saying the UK is out of recession, but small businesses are often at the end of a chain that means an invoice generated to a client or customer on day one may go through several other businesses, and several more 30-day payment cycles, before the often-delayed cash reaches that small business. In many cases, some small businesses are actually living other businesses’ or bodies’ bad fortunes of six months ago.”

Haines Watts has conducted an in-depth survey of how the current economic and business environments are impacting upon owner-managed businesses, and the statistics are stacking up strongly against them as, in parallel, frustration mounts.

“Many small businesses are still undoubtedly living the recession. 45% have had to make a claim through the courts for unpaid bills, nearly a third of North West business owners are currently being asked to provide personal guarantees for their business, 20% have seen their banks reduce or restrict credit facilities, and 17% have had to bring in additional bank finance.

“But new phrases are creeping in to describe the challenges: half of all businesses surveyed in the North West say they have experienced ‘destructive cost-cutting’ from competitors – basically those competitors who can afford to are ‘buying turnover’ by pitching for business at whatever level it takes to win it - and 22% say they have had to pitch for work on a zero profit basis.

“That such a high level of debt recovery goes as far as court action shows that small businesses’ lack of economic muscle is being exploited. In our experience, public bodies are amongst the worst when it comes to paying promptly. The threat of court action can be effective, but by the time the court has moved – it can be too late: the small business making the claim has gone to the wall,” said David Fort.

Small owner-managed businesses are the powerhouse of the UK economy: of the 4.7 million businesses in the UK, 99.3% are small firms with fewer than 50 employees.

Of the 8,700 owner-managed businesses invited to take the Haines Watts Business Owner Survey, 645 responded giving a response rate of 7.4%. A selection of business owners were further invited to take part in in-depth interviews.

Haines Watts is a UK top 20 chartered accountancy firm specialising in the owner-managed sector, providing a broad range of services out of its 50 offices. The firm has 80 years experience and 30,000 clients.

Ends

Further information:

Iain Macauley

im@pressrelations.co.uk

07788 978800

www.hwca.com

http://www.hwca.com/offices/accountants-north-west.php

North West business owners most likely to be asked for personal guarantees by banks

http://www.thebusinessdesk.com/northwest/news/27677-region-s-directors-more-likely-to-be-asked-for-pgs.html?news_section=4148

PRESTON ACCOUNTANT: NORTH WEST BUSINESS OWNERS MORE LIKELY TO BE ASKED FOR PERSONAL GUARANTEES

HAINES WATTS

CHARTERED ACCOUNTANTS

PRESS RELEASE

July 12, 2010.

PRESTON ACCOUNTANT: NORTH WEST BUSINESS OWNERS MORE LIKELY TO BE ASKED FOR PERSONAL GUARANTEES.

Watch video.

One in three North West business owners are being asked by banks to provide personal guarantees to support their companies - higher than the UK average, and more than twice as many as in the East Midlands.

Chartered accountants Haines Watts, with offices in Preston, surveyed 8,700 owner-managed businesses, and, from the responses received, found that 31.63% of company owners in the North West region had been asked by their banks to provide personal guarantees compared to 15.38% in the East Midlands, just over 17% in Scotland, 21.74% in the South East and 24.77% in the West Midlands. The national average is 25%.

“Small owner-managed businesses are the powerhouse of the UK economy: of the 4.7 million businesses in the UK, 99.3% are small firms with fewer than 50 employees, yet they feel they’re being forced to drive round with the handbrake on,” said David Fort, a Partner with Haines Watts Preston. (Watch video, 1 min 36 secs.)

“People in business need access to finance, the banks have got to release the purse strings; 31% of business owners in the North West say they’ve been asked to provide personal guarantees, which is far higher than just about anywhere else in the country.”

But despite that handicap, David Fort says the signs are that the North West region is amongst the best placed in the UK to drive recovery.

“The North West is actually ideally placed; it has fantastic businesses, fantastic business leaders and a great workforce,” he said.

“But we do need more support from a government which should be looking at more ways of backing businesses, particularly with regard to releasing funding, taxation and how tax changes might give businesses an extra incentive to grow.

“On a basic level, we also have an excellent education system in the North West, it creates useful workers, but some graduates come out of university without the basic skills business requires, so companies should be encouraged to train their own staff so they gain relevant skills.”

Of the 8,700 businesses invited to take the Haines Watts Business Owner Survey, 645 responded giving a response rate of 7.4%. A selection of business owners were further invited to take part in in-depth interviews.

Haines Watts is a UK top 20 chartered accountancy firm specialising in the owner-managed sector, providing a broad range of services out of its 50 offices. The firm has 80 years experience and 30,000 clients.

Ends

Further information:

Iain Macauley

im@pressrelations.co.uk

07788 978800

www.hwca.com