An Insight into our Business Gym in Partnership with Downtown in Business

Coming right up is an exclusive on the latest Business Gym event held on Wednesday 16th November 2022 in partnership with Glenville Walker and Downtown in Business at Hope Street Hotel, Liverpool. During this session our team placed business resilience centre stage as the topic of burning discussion for business owners wanting to learn more about navigating their business through the current economic climate.

Director and Head of Business Law at Glenville Walker, Denise Walker and Leyton Jeffs, Commercial Finance Partner at Sedulo joined Frank Mckenna, Chief Executive of Downtown in Business to explored the topic of business resilience and how to invigorate growth with the help of a lively discussion across the table. Frank Mckenna fired questions at Denise Walker and Leyton Jeffs who gave their honest advice and opinions.

Firstly, they were asked, ‘What is business resilience and how does a business achieve it?’Business resilience was defined as a capability to withstand the shock of an unexpected disruption and to rebound to an unacceptable state of ongoing operation. It was suggested that current circumstances such as soaring inflation, rising interest rates, decelerating growth, global tensions and predicted economic downturn can have an affect on a business's resilience. Denise strongly advised that it’s better to prevent risk to your business and to ensure it is robust rather than to attempt recovery later. Furthermore, both parties suggested if you have money in the bank, you can think long term and make a holistic strategic plan to prevent those detrimental risks. However, its essential to acknowledge a successful business plan isn’t made up solely of numbers, it’s also about analysing those risks and finding out how you as a business owner will mitigate them.

Leyton added, a business isn’t born resilient...what makes it resilient is its people. The room recognised a significant cultural shift in the workplace in the post pandemic era, as employees are far more driven by work life balance and lifestyle than in previous times. It was also highlighted that since the cost-of-living crisis employees demand more pay and often move roles if these criteria can’t be met at their existing firm.

Denise continued to add that businesses can take many proactive steps to achieve resilience, one is by looking carefully at its leadership style. If you as a leader inspire your workforce, are genuinely collaborative and drive your staff to work towards the same goal then they are more inclined to remain loyal and actively involved in a company’s growth and development. If leaders set out clear goals with employees with a focus on their long-term career progression and development within the business, they have a better opportunity to retain talent and drive the business forward with real purpose.

Another suggestion was to ensure you create a strong brand with a unique offering to set your business apart from the competition, ensuring that you are known as a business of quality and the best in your field.

Denise concluded her point by stating that it was increasingly important to maintain a good healthy relationship with your bank which all helps aid resilience of a business. Of course, all of the above requires careful strategic forward planning and investment.

Funding for growth, where can you find it and at what ‘price’ can it be obtained?Finding the funding for growth is dependent on your type of business but you can find it from banks, asset-based lenders, crowd funding, invoice finance and private equity.

Leyton went into depth about a common worry...interest rates. He stated the number makes no difference, it’s understanding the opportunity for growth and evaluating whether you can make profit from that opportunity. Denise supported this by adding that the price of interest rates isn’t the issue, it’s the price of control regarding funding growth via private equity. There is a real chance of losing your shares if you don’t achieve what you agreed on the outset of the private

If it starts to go wrong, can a business be rescued successful?

Denise and Leyton both emphasised on the importance of seeking help before it is too late. This is because the earlier it is, the more options a business has. For example, they could seek funding or could cut costs at an earlier stage. Furthermore, deals can be made with HMRC as well as banks as they may offer support if approached properly and in a timely fashion. Both the audience and the panel agreed that it may not always be right to rescue a business and should potentially consider insolvency as you may be able to buy the business back whilst leaving the debt behind.

Need assistance?

If you would like any help and advice on purchasing out of administration and funding, please contact our specialist corporate team on 0151 305 9650 or email hazel.walker@glenvillewalker.com.

This article is not intended to be interpreted as advice.