N E W S L E T T E R S
WESTON-SUPER-MARE & DISTRICT, CHAMBER OF TRADE & COMMERCE
PRESIDENT’S REPORT
We are now in no doubt; according to the Governor of the Bank of England, we are in a recession.
The first casualties were the highest expenditure items. House prices have plummeted and estate agencies across the country are laying off staff or closing down entirely.
New car sales are at a low, High Street stores have suffered a record downturn with furniture and electrical goods being down on the same period last year by up to 30% in extreme cases.
Weston itself and its surrounds have been comparatively lucky. The general feeling across the area is that things are bad but not as bad as they could be. The population has always suffered when the weather is foul and this last year has been as wet as we can remember so the financial effect has been diluted somewhat. As a lower cost holiday destination, we are hopefully picking up the trade that cannot afford to travel overseas.
As a quiet town that has not benefited from government investment until recently, we saw signs of decline long before it became a national then global problem. Now that the recession has hit, the planned developments that we badly need are all reaching final stages before work starts. Because those developments were proposed and authorised before the recession began in earnest, they will go ahead despite the pending financial gloom.
This puts Weston and its surrounding districts in an enviable position: A town experiencing growth and development when others are suffering from decline. As more and more visitors to the town are coming from areas falling into deeper recession, the sight of new Hotels, a new Seafront swimming pool and leisure complex and a resurrected pier with more improvements along the seafront and Marine Lake area, will hopefully be a welcome and uplifting experience.
There are other improvements in the pipeline for the town and its supporting networks, with changes to the local transport plan to include alterations to Junction 21 and links to and from Bristol increasing. The long term outlook for our area is good but we cannot avoid the fact that things may well get darker before the dawn. If our members can work together to help us all weather the storm until the new work is finished, Weston can return to the glory days.
Now is the time when we all welcome any help we can get, whether it is financial or advisory. The Chamber itself doesn't offer financial help itself but does have all the necessary links to grants and funding that may be available and can and does offer advice through business breakfasts, training and advice seminars and through its members who are themselves advisors. A Chamber only survives if it has a strong membership and is active and utilised by those members so I ask you all to contact your Chamber, let us know what we can do for you and what sort of activity you would like to see and would benefit from.
Contact myself or our executive team through the Secretary on:
08707460830 or by email:
secretary@westonchamber.co.uk/helenwhiston@hotmail.com
president@westonchamber.co.uk
Or through the website:
www.westonsupermare.org
Chris Knight
NEW MEMBERS
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Since our last Newsletter, we are delighted to welcome as new members:
Lotus Clinic
which specialises in alternative therapies, particularly acupuncture and is run by
Jeannie Biezsley
PAT Testing – Roy Scarborough
Karl Embrey – Driver Training Ltd
Cost Control Services - Nigel Ford
and a huge welcome back to Rookery Manor, a hotel on the outskirts of Weston
- their representative is Chris Turner
We are delighted that they are able to join us and hope that we will be able to meet them when they attend future meetings.
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CONTACT DETAILS
We would be very grateful if you could let us know who is the current contact person between your company and Chamber, as many of our records require updating. Also, we do not have many email addresses and would be very grateful if you could furnish you with these, so that the cost of future mail-shots may be emailed and thus costs lowered (as always, we are always happy to send you hard copies, should you not wish to receive items by email).
DATES OF MEETINGS
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All our meetings are now due to be held (unless we are invited elsewhere, when we will advise you otherwise) at The Royal Hotel in South Parade.
Dates for future meetings have been decided as:
18 February, 18 March, 15 April, 20 May and our AGM on 17 June. All will commence with an Executive Committee meeting at 7.00 p.m. and an open meeting at 8.00 p.m.
We hope to welcome speakers from The Lions Club to our February meeting and from V.A.N.S. at our March meeting.
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Article: Weston-super-Mare MP John Penrose gives his views on the current economic crisis and the importance of supporting small and medium sized businesses
You can't borrow to get out of debt
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All around the country, the economic weather is looking grim. People are already suffering with sky-high fuel prices, food bills and mortgages. Now that unemployment is increasing, the pain will really start to bite. So what's the solution?
Well, according to Gordon Brown, Britain should increase public spending and reduce VAT to encourage consumer spending too. The problem is he'll have to borrow massively to do it, which means big tax rises when we have to repay the money later. Anyone earning more than £20,000 will be worse off by 2012/13.
Other countries are spending a bit more, of course, but they didn't borrow so much in the good times. That means they can afford it. Britain is like a business that's deep in hock to the bank. Our balance sheet is already under pressure, and we haven't got any financial wriggle-room now the bad times are coming.
Not only that, but more Government spending usually involves lots of waste. If Brown fritters away the money he's planning to borrow, spending it on politically-correct projects run by well-connected firms, we'll be like a company that takes out a loan for a new piece of machinery but spends the money on a posh desk for the Chairman instead. When the bank wants its money back, the company's productivity hasn't improved and it can't generate the necessary cash.
Instead, we should get the banks lending again - not just stabilise them so they don't collapse - by creating a massive Government guarantee scheme for new loans. That would get fresh blood flowing through Britain's economic veins again, saving good businesses from the chop because banks have called in their loans. That's the biggest threat facing British businesses today, and we won't cure it with a politically-motivated, debt-financed spending splurge.
Once the banks are lending again, we must recognise that small and medium sized businesses need extra help. They account for over half of private sector employment and turnover, but they're being squeezed by soaring energy costs, late payments, shortened credit lines, falling customer demand and government regulation. That's why we should cut Small Business Corporation Tax from 22p to 20p; defer small and medium business VAT bills, initially for a period of six months; and cut National Insurance Contributions for businesses employing less than five people as well.
These ideas are just a start. We could fight unemployment by cutting taxes for firms that hire staff who have been unemployed for three months or more too. But most important of all, once we've got the banks lending again, we must stop the Government from borrowing money we can't afford. Our businesses and our families will be struggling with higher taxes to repay it for years afterwards if we don't.
Top tips
Surviving a downturn
Surviving a downturn requires many of the same qualities as excelling in a boom
time: agility, adaptability, strength, direction, prudence, perseverance, positivity,
patience; to name a few. But what practical steps can businesses take to ensure they
survive and succeed during a downturn?
1. Review your business plan
Compare your business plan to your business reality. Are you on track or off course?
Is your financial performance as strong as your plan says it should be? If it's not, how
might this affect your future plans and operations? To what extent could a downturn
in business affect your strategic objectives, targets and financial projections? Your
review may give you confidence moving forward, or else you might need to adapt
your expectations for the future. Either way, reviewing your business plan puts you
firmly in the picture, and thus firmly in control.
2. Budget with caution
Cutting costs may be an inevitability during hard times. But do so with care and
precision. Improving financial efficiencies is one thing, cutting budgets to the
detriment of business performance is quite another. Cutting costs may result from a
panicked perception that your business will not survive without tightening your belt.
But this may become a self-fulfilling prophecy, in that your business might decline -
not because you didn't cut costs, but because you did. Reviewing budgets is crucial -
just make sure your evaluation weighs up the costs of cost cutting.
3. Sales and marketing
The temptation to cut sales and marketing spend when things get tight could be
strong. The great paradox with this approach is that sales might dry up further. A
tricky balance. The single most important step to take - over and above cutting spend
- is ensuring that spend is achieving results. This means tightening up on
performance metrics. Track activity closely and identify which sales and marketing
initiatives are performing strongly. This enables you to maintain strong activities, and
helps identify areas to cut costs if necessary. Research and development is also
important for effectively identifying and fulfilling customer needs, which may change
during downturn.
4. Relationships matter
Renew your focus on relationships with customers, employees and suppliers. Loyalty
initiatives could help retain key customers; or more generally - take time to
understand what issues and challenges customers face during downturn, and be
flexible in adjusting to their needs. Employees may also be affected by downturn, so
engaging effective and open lines of communication is crucial. If tough times are
ahead, employees will be more understanding of change if they are well-informed (as
opposed to being kept in the dark). Motivating staff through training or development
initiatives (for an example, see 'innovate and motivate' below) could also give
employees a sense that they are contributing to the fate of your business. Finally, a
focus on maintaining strong relationships with suppliers could, for example, help you
to negotiate better credit terms should you need to.
5. Innovate and motivate
A recent global survey - based on interviews with 765 business leaders - placed
employees as the number one source of innovative ideas (not surprising when you
think about it). This offers two opportunities: innovate, and motivate your employees
while you're at it. And remember, innovation doesn't necessarily mean conjuring up
grand inventions or ground-breaking technologies - it could simply mean tackling the
small things, such as doing more with less, or finding new ways to satisfy customers.
A focus on small, incremental improvements to business performance could make all
the difference and give you a competitive edge. It could also engage your employees
by empowering them to contribute to your business's survival and success.
6. Keep both eyes on the ball
Pre-empting problems in advance of their arrival is vital to planning effective
solutions. For example, banks are not particularly interested in lending money when
things go bad, so spotting financial issues before they arise means you can present
lenders with a well-reasoned action plan to get you back to full strength. Identifying
sales dips or staffing issues as early as possible also means you can stay one step
ahead, avoiding potentially nasty surprises. Open lines of communication with key
staff, alongside regular performance and financial monitoring are therefore top
priorities. Avoid paranoia, but also avoid burying your head in the sand.
7. Don't panic
The media spotlight invariably turns onto tales of woe. In light of such negativity,
business owners may feel as though their fate is already sealed. Talk of recession is
definitely premature; recent figures predict nothing more than a slowdown in growth.
There is, then, no reason to panic. It may be wise to prepare for the worst, but there
is no good reason not to strive for the best. A positive, realistic and constructive
frame of mind is the best way forward. The dictionary defines panic as 'often causing
wildly unthinking behaviour'. Avoid it at all costs.
8. Be agile
Many of the tips discussed in this article demand a single common quality: the need
to be agile and adaptable in the face of change. This demands an early awareness of
change, a rapid acceptance of it (as opposed to resisting it), and a flexible, motivated
workforce capable of responding to change positively.
For more information or further resources:
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0845 600 9966
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Message from Lord Cotter
I have been in the House of Lords now for two and a half years, during my time as an MP for eight years I was spokesman for the Liberal Democrats on business in particular Small Business. Now in the House of Lords I continue to represent the small business community, but in addition I have the Skills Portfolio, which is very specifically on the issue of Apprenticeships
I am also Secretary of the Parliamentary China Group, an issue I engage in very frequently. Locally I am patron of ‘Somewhere to Go’, the local Osteoporosis group, and PROP a local charity concerned with Dementia. As a member of House of Lords you can have quite a wide range of areas to pursue. For myself before I entered Parliament I spent a lifetime in the Small Business Community. This is just for your background.
So perhaps in the circumstances in which we live, I thought a few words on the current economic crisis, with a business perspective may be appropriate?
“The economic and financial crisis in which we now find ourselves has an impact on everyone, the public individually and of course the business community. Since my portfolio in the House of Lords is Small Business and Skills it has been a very busy time for us in Parliament, for myself in particular.
Along with others I have been pressing the government very strongly to help small business. The government announced that government departments will settle bills within ten days my role has been to press the government to ensure this system is implemented quickly, and I have also asked that all government agencies should make the same commitment, and have requested ministers to persuade local councils to do the same.
There is a need to give small businesses easy access to be able to bid for local and national government contracts. There is also a need for business to be able to borrow money at reasonable rates, without banks imposing harsh conditions at short notice. All these issues I have raised in the House of Lords, and will continue to do so. If any local trader has any concerns, or examples of difficulties they may be facing I will be glad to hear. Since despite perceptions we in the house of House of Lords have many opportunities to influence government, indeed I put all these points and others to the new trade minister Lord Mandelson just the other day. On apprenticeships I am working to ensure it is as easy as possible for smaller firms to be able to participate, since skills are so important.
So we are in the early days, unfortunately, of a very difficult time for the business community. Small shops are vital to our local area, and just this year my Retail Development Bill passed through the House of Lords. It will not become law, but it has enabled the issues around the viability of small shops to be highlighted and I have worked closely with the Federation of Small Business and others on this issue. There are dark times ahead, so we all need to work together”.
Yours sincerely,
Lord Cotter
IS YOUR BUSINESS RECESSION PROOF?
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BUSINESS PROTECTION: Preventable Business Risks
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risks:
.. Poorly drafted Terms of Business and other contracts may be invalid or unenforceable
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do not receive full payment for them
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Our commercial specialists can draft the necessary documentation or check what you already have in place
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EMPLOYMENT MATTERS: The Common Mistakes
In a harsh economic climate you may need to make some tough staffing decisions. If made without proper
consideration of the regulatory requirements you could be leaving yourself open to costly claims and negative
publicity. Common mistakes include:
.. Out of date or inaccurate employment documents
.. Poorly managed redundancy situations
.. Lack of restrictive covenants
Our employment specialists can work with you to ensure that your staffing decisions strengthen and protect
your business rather than creating unnecessary liabilities.
DISPUTE RESOLUTION: Managing Common Disputes
When times are hard disputes are often more common. When they occur, they need to be resolved quickly and
efficiently to restore commercial confidence. Common disputes include:
.. Property disputes
.. Disputes with professional advisors
.. Disputes with partners, directors or shareholders
.. Disputes over trademarks and copyright
Our legal disputes specialists will give you a realistic assessment of your prospects of success and advise on
a variety of solutions to resolve commercial disputes.
At Burroughs Day Solicitors we offer 30 minutes of free advice so that we can explore your options
together, allowing you to make an informed decision about the best way to recession proof your business.
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FOR FURTHER INFORMATION AND A FREE 30 MINUTE CONSULTATION PLEASE CONTACT
FIONA DAWRANT ON 0117 930 7555 or email fd@bd4law.com