YOU NEED TO About Small Garages DO Need The Banks 2232
Since the start of the crash of the economy, small businesses have had to “duck and dive,” like at no other time in their history. I myself have been the owner of a small business for over thirty years and remember well the times of “milk and honey,” when the banks were throwing money around as though there was no tomorrow.
My very own business background is that of a small garage owner in Halifax, West Yorkshire in britain. Dealing with a mid-sized bank who always wanted blood from the stone. In the good old days I had to arrange a meeting with the branch manager, who was simply always a stereo type bank manager with a stiff upper lip and no sense of humour. I had to provide a very good cause to be able borrow money for any reason.
I would arrange a meeting and have to turn up on time and in my best “bib and tucker,” I could confess that I could never get accustomed to this and were always a bag of nerves right from the start of the meeting to the end.
I usually got what I needed in the end and I suppose the manager felt good about me and my business. The meeting always gave me possiblity to show off my enthusiasm for my garage and business in general. Bank managers in those days would also show fascination with what the business enterprise was doing and would often call round for a chat or observe how your latest bank funded project was going.
All this is resulting in the point that looking back I was accumulating a certain knowledge of finance and banking requirements. This rapport that you developed was a long way off from massive changes that developed entering the two thousands. In my own case my local bank completely shattered the stiff upper lip old fashioned style bank manager and replaced them with “business managers”, inside our case a he became a she.
The down side came when on her first stop by at my business, I presented her with my latest group of accounts and she cannot read them?. I did so not embarrass her but this is a huge down size from the banks perspective, giving me no future confidence in the lender all those years of mutual respect were blown away in a half hour meeting.
However minus the banks help or not we always believed that small businesses should grow at a small percentage “year on year,” and that theory has always put the business enterprise in good stead and gave my family and I a good standard of living, but I could see that which was going to happen and that the bubble would burst.
Most mornings after breakfast I like to watch CNN on television and pointed out that things were coming out on the news that type of leaked out by the finance institutions as to what would happen.
My staff were the first ever to be warned, I’d advice them not to fall for the banks offering them 110% mortgages and easy money supplied for nothing, as things were going to go wrong and the bubble would burst. Luckily most of my staff took notice of my advice and most of us got through the crisis without trouble.
Eventually as the crisis began to take hold money supply started to run out. Many small businesses are run by very clever people, we have to be clever to survive and plans were manufactured in my business to counteract the problems that might arise in the not too distant future.
My company had a normal staff meetings, to discuss the problems before they arrived. Firstly we became aware that the bigger companies were not going to the stand by position and lose their business and so very quickly they begun to undercut our customers to the extent that people could no longer compete on price and even though we gave superior service to our clients, they still moved on because of price.
My only response to this was to release among my drivers, this saved me the profit I would lose in the next twelve months. Like millions of other small business owners I was on automatic pilot and reacting to the crisis on a daily basis making changes to just how we traded, both on the supply side and on the sales side.
My company are members of the FSB, Federation Of SMALLER BUSINESSES and they were saying at that time that” things were likely to get much worse” and the banks were going to get much tighter in their lending to small enterprises and mortgage loans. However the first problem to occur was that the bigger companies were starting never to pay there bills promptly. The British government stated they would,”check out the matter with great urgency” but as usual nothing happened and several small businesses began to close, especially individuals in manufacturing such as for example clothing, were it was difficult to manoeuvre, we could actually change our product range and also went more to internet selling, and we have been now reaping the rewards of change.
Small business has long been the backbone of the economy and flexibility has been the key word to the success of our survival, we can weave our through all the obstacles and things thrown at us on a regular basis. Banks for me are of great benefits to us all and although just about everyone has heard frightening stories of what the banks did, I must state that we’re able to not work without them and even though I’ve not had things my own way, that my bank has been fair with my business interests, but I really do think that the typical of bank staff has deteriorated probably caused by staff cut backs due to financial meltdown, employing younger, cheaper more inexperienced personnel.
It has probably been my third world financial crises and as many other owners of small enterprises will come out the other side a stronger person and a stronger business. My advice would be to diversify as much as possible and not keep all your” eggs in a single basket” act on your own one reactions, if you think you should make changes, make sure they are quickly do not loaf around. Always keep your staff informed, they’re the ones that can make or break the business, inquire further for just about any ideas of how you will get through the crisis, you can be surprised at a number of the good ideas that your staff will put forward. The Bank Help