Geography matters – is the location of your business hampering potential growth?
Identifying how your business can grow effectively is often easier said than done, with numerous factors meriting strong consideration before the ideal balance is achieved.
Everything from the amount of staff required right down to the initial outlay on IT equipment needs to be thoroughly considered if your company is going to achieve a platform for growth.
However, it may also be an idea to give due consideration to the specific location of your company.
Location, location, location!
A 2011 study by business academics at Aston University identified that more than 40% of UK high-growth firms are located outside cities but actually generate more than 50% of all new jobs.
The study also found that high-growth firms are also particularly capable of dealing with a recession and its subsequent effects.
Even though the study is almost 2 years old by this point, it highlights the idea that it is worth putting some effort into researching where your business could potentially grow most effectively.
This could be particularly true if your business is undergoing a full restructuring process. It could even be possible that creditors agree to a full relocation in order to keep the business running as a going concern under the terms of a pre-pack administration agreement.
It may be that one of the reasons why your business has been struggling has been the fact that it is cramped in amongst a number of companies who provide a similar service/product.
By removing yourself from the source of such fierce competition, it is entirely possible that your business can establish a new lease of life.
Whether this involves moving from a city to a smaller town or vice versa, it could be worth trying for the sake of your company’s future.
If your SME is struggling to survive in the current climate, calling on the services of insolvency practitioners such as Moorfields could be a good way to reach the most practical financial solution for those involved.
By Phil Smith