Unexpected events can really put a dent in business growth and confidence. According to new research, nearly 2 out of 3 UK businesses have experienced an occurrence that they weren’t prepared for and which had a substantial negative impact upon their company. Half of those admit that they had no plan in place to deal with such an event. This shows that a lack of planning amongst many UK businesses could be impacting upon their ability to recover strongly and post good growth figures.
The Risky Business Report, conducted by Allianz Insurance, has found that those businesses who experienced a significant negative event changed how they identified, planned and managed business risks in 96% of cases. This shows a ‘learning from mistakes’ kind of mentality – which in itself can be dangerous, as businesses are failing to prepare adequately for the negative situations that may arise in the course of day to day business.
These negative events can be anything from customer late or non-payment, accounting for 23% of problems in the survey, to accidental damage to stock (17%), suppliers not providing goods on time (16%), natural weather disasters (16%) and faulty stock (13%). The report found that those businesses who were managing to plan for risks had the greatest chance of delivering healthy growth.
A big part of planning for growth and insuring against unexpected events is having adequate finance available. This is something that invoice finance can offer. With a structured factoring or invoice discounting plan, your business can make sure you’re planning ahead and avoiding problems like customer late payment from the outset. The reliable injection of working capital can be useful in dealing with problems that would otherwise result in a crisis of capital. With a reliable income from factoring each month, you can start to plan ahead and start to grow your business more positively.