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For many businesses, the past 4-5 years have been a time to hunker down, take stock of their position and do what they can to survive. The market conditions over this period have been dire to say the least and with the economy dictating the direction that the country takes it is no wonder we have seen so many businesses going to the wall.

Just like a forest fire which devastates all around it only to lay the foundation for fertile growth, the last 6-12 months has seen a marked increase in the nations 'feel good factor' primarily driven by the upturn in the world's economy. This upturn marks the start of a new dawn in business and one which if you stand ready to capitalise on should ensure that you emerge from the cinders of the past 'forest fire' with strong roots to recovery.

The events of the previous 5 years has however changed the way in which businesses think in terms of cash flow and the ability to weather any future financial storm. Gone are the days of frivolous growth backed up by large borrowings; today businesses is far more prudent with their cash flow and prefer to make use of whatever spare cash is available to further their businesses rather than repaying the debts of the past. This is a shift change from recent years and shows that businesses are now looking to move away from the hand to month financial appetite they had become used to.

The new Dawn of Business

In order to live to our means, businesses emerging from the financial crisis era are looking towards lean costs and high profitability and one area which historically has resulted in a high cash flow is purchasing business premises. The high rental changes or in some cases lender repayments crippled many businesses when times were tough and customer demand for products or services weakened.

Many businesses are now turning to making use of in order to dramatically reduce the amount of business rental they historically were consuming. The savings which can be experienced through employing serviced offices for your business can be significant. The cost savings which are incurred can then be applied to other more cash sensitive areas of business in order to ensure that should demand for products or services weaken in the future that there is sufficient cash flow available to counter any financial problems. The fact is that business is very much wary of the future and any steps businesses can take to help protect their position are a positive step in the right direction. 神田 貸事務所

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