Seriously – you read that right. According to research conducted by insolvency practitioners Hudson Weir and published in the Gazette, 760 businesses ceased trading in December ’16, and a further 1,093 will be wound up this Jan!
The early years are, perhaps predictably, the toughest, with only 41.4% of all businesses started in the UK in 2010 surviving beyond their fifth birthdays.
The worst in terms of survival rates are the food and drink start-ups – 14.5% of those closed in December were from the sector. Time for a stiff drink – if you can find anywhere selling one.
Inadequate cash flow is the affliction that currently sounds the death knell most frequently; particularly within construction companies – 2,450 of them perished in this way in 2016, followed by wholesale, retail and repair of vehicles.
Don’t invest in bangers and mash or old bangers, then, but do “Get to know the normal patterns in cash flow data”, “Look to the future” (“A clear-eyed view of incomings and outgoings six months to a year in advance helps manage business expectations”) and keep up to date with invoicing and payments.”
Oh and if “cash flow is a problem, and you can no longer pay your bills as they fall due, the earlier you speak to an insolvency practitioner the better.”
Because everyone loves calling insolvency practitioners. Why not dial in that root-canal surgery you’ve been putting off while you are at it?