Experience

Did I speak too soon? No sooner did I say our finances were in a good position that the UK economy has gone back in to recession! In a way, I’ve always been slightly paranoid that a double-dip might occur. Maybe every business owner feels the same way but do I need to be so concerned? Could things really get as bad as they were a few years ago when we lost 65% of our turnover?

When I think back to April 2009 and how the recession affected us, there were many factors putting us under pressure. First we had gone through a period of rapid growth with increasing numbers of customers using account facilities; secondly we registered for VAT and it meant a lot of changes in our accounting systems; third we had tiny overdraft facilities; fourth our old booking system was on its last legs and lastly; we were launching our new booking system with the biggest change and investment we had ever made. It took all of our savings, removed any financial safety net and required a migration which consumed considerable.

Admittedly, the booking system was 50% grant funded but the level of uncertainty surrounding the financial support was stressful because it removed control from our company which made it very difficult to plan. In addition to all of this, our old (home grown) booking system was struggling to cope with the volumes of work we were putting through it and needed constant attention from myself to keep it running. What is more, our drivers were accustomed to a level of income that they expected to continue and questioned my decisions constantly as they saw their earnings decrease – it was unpleasant to say the least.

Sometimes when I think back to three years ago I giggle and question if I was completely mad? Looking at our situation today, we are in a much more comfortable position. First, we have the experience as a team to take tough decisions (and react quickly). Second, we have considerable credit facilities should we need them. Third, our cash flow is significantly better. Fourth, my time is more flexible and readily available to deal with emergencies. Fifth, our IT systems are stronger, more modern, incredibly efficient and externally managed. Sixth, our payments to drivers take less time to manage. Seventh, we have early warning systems should anything change unexpectedly and finally - above all else we are settled.