Times change so do your financing needs
2018 was a year that saw the High St ravaged, with numerous retailers closing for good and large-scale closures. As someone who grew up in the heyday of Toys R Us, scoffed at the likes of Poundworld and the trickery I’d learnt they traded within and been concerned about New Look since the early 2010’s I wasn’t surprised but saddened nonetheless as thousands of hard-working employees lost their jobs through no fault of their own.
Why has this happened and why now?
There are undoubtedly lots of reasons why but fundamentally it comes down to relevance or times change and you need to change with them to coin an old phrase.
Toys R Us did not keep up with changes in its market place. It focussed on high margin shed operations thinking it could make it work with nostalgia as parents today grew up knowing its adverts. Amazon and others made sure that convenience and price outplayed the heartstrings. Head over heart if you will.
Times have changed. Information availability is high, cost and convenience rank higher than nostalgia in spending terms leading to challenges for once important brand strong companies.
If we break this down further, businesses fail through a lack of cash; plain and simple. Yes, markets change around them, but the only constant is cash (or lack of it).
When was the last time you reviewed your cash flow? Hopefully, it was recently and was probably with your accountant. What did you decide? Are you happy with it at its present level?
I am not advocating change for changes sake. If you remain relevant to your clients, long may that continue. If you haven’t reviewed your cash flow in recent times, let us do it together. Cash flow is not witchcraft it’s a fundamental part of your business and I will give you a free consultation in return for a coffee and an hour of your time.
Dare to review your cash flow? Email Ravens Wood Capital firstname.lastname@example.org or call Russell on 07818452505