Cash flow concerns top 2005 New Year resolutions

Almost two thirds (64%) of all small business owners and managers in the UK are vowing to improve their cash flow management during the next 12 months, according to Bibby Financial Servicesí annual survey of New Yearís resolutions for 2005*, launched today (20 December).

This represents a 10% increase on this time last year and reflects what has been an ëup and down yearí for the small and medium sized business sector which has experienced rising costs including interest rate and National Minimum Wage hikes as well as soaring fuel prices.

The findings are in direct contrast to the views of the small business sector last year, when the top New Yearís resolution for 56% of the UKís entrepreneurs was to devote more time to family life.

David Robertson, chief executive of Bibby Financial Services said: ìThis suggests the business sector is feeling somewhat cautious about what lies ahead in the year to come in light of recent interest rate rises and the subsequent slow down in the property market.î

The skills gap is also a major issue this year with 59% of owners and managers vowing to develop the skills of their workforce in the next 12 months, an increase of 8% compared to last year. This reflects growing businesses concerns about the lack of expertise hampering their businessesí productivity and competitiveness. Despite ownersí and managersí fears about the skills gap however, just 37% plan to invest in training or further education for their staff in 2005.

However, there are still signs of positive attitudes, with more than half (55%) planning to identify new markets for their products and services. Suggesting that while UK firms are understandably nervous about maintaining cash flow in the next 12 months, there is a cautious optimism among owners and managers as the New Year begins with businesses seeking new channels to increase sales revenues.

As we head into 2005, it would appear that spending time with the family is still a priority for Britainís bosses with 53% vowing not to neglect their loved ones. This focus on home life is underlined with more than a third
(39%) of owners and managers pledging to work shorter hours next year. David Robertson comments: ìSome would say that by making New Yearís resolutions, entrepreneurs are setting themselves up for a fall. That is, if the thousands of people paying out for gym membership in the first few weeks of January are anything to go by! However, with owners and managers worrying about the need to get their cash in order, getting customers to pay on time and make the most of early settlement discounts, vowing to improve cash flow management is one New Yearís resolution that they would be wise to keep.

ìAs we head into 2005, there has never been a better time for entrepreneurs to reassess their existing financial structures and ensure the best possible cash flow solutions are being adopted.

ìWith owners and managers pledging to look after their finances better, improve the skills of their workforce and at the same time, identify new markets for their products and services, it looks as though entrepreneurs are going to be very busy in the coming months.î