UK bosses put cash first for 2007

Over half (58 percent) of all small business owners and managers in the UK are vowing to devote more time to improving their cash-flow management in the next 12 months, according to Bibby Financial Servicesí annual survey of New Yearís resolutions.

The findings echo the views of the small business sector two years ago, when cash-flow also topped the table, proving that the issue is still a major concern for UK entrepreneurs.

The focus on cash-flow was closely followed by the need of 54 per cent of business owners and managers to diversify and identify new markets for their products and services in 2007.

The findings suggest owners and managers are planning to dedicate more time to managing financial processes to keep cash flowing smoothly through their business and minimise the threats of bad debt and late payment. The desire for entering new markets shows UK entrepreneurs have a hunger for growth and this will feature highly on the agenda as we enter 2007.

Despite the renewed emphasis on business life, as we head into 2007 it would appear that spending time with the family is still an important factor for Britainís bosses, with 52 per cent vowing not to neglect their loved ones. This focus on personal life is underlined with more than a third (36 per cent) of owners and managers pledging to work shorter hours next year.

The ëskills gapí has historically been a major issue for businesses in recent years, but features less so in this yearís survey. Just 49 per cent plan to develop the skills of their workforce (down 10 per cent from 2005) and only 32 per cent of businesses plan to invest in staff training or further education in 2007 (down from 37 per cent in 2005).

Commenting on the findings, David Robertson, Chief Executive of Bibby Financial Services said: ìWith owners and managers worrying about the need to get their cash in order for 2007, getting customers to pay on time and making 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 the New Year, there has never been a better time for entrepreneurs to reassess existing financial structures and ensure the best possible cash flow solutions are being adopted.

ìAlthough many owners and managers have expressed good intentions to spend more time with their families and work shorter hours, it looks as if next year will be another very busy one from a business perspective and I suspect such noble gestures will be pushed aside as 2007 progresses.î