SFP Group’s ‘Guide to Business Survival’ offers support to fire and security companies
02 March 2021
BUSINESS RESTRUCTURING, recovery and turnaround specialist the SFP Group has just published a free ‘Guide to Business Survival’ that contains easy-to-follow practical steps outlining a number of remedies designed to assist fire and security sector businesses to successfully navigate their way through the current COVID-19 crisis.
The ‘Guide to Business Survival’ is set up in three clear stages of keeping a given business on track or otherwise ensuring that it’s back on track. Part One explores the steps a business can take without having to resort to borrowing, while also focusing on the importance of a cashflow forecast in understanding the true financial position.
If a company’s in need of funds, Part Two of the ‘Guide to Business Survival’ concentrates on the various different funding options available, encompassing short-term lending schemes to help businesses ‘bounce back’ from the current crisis as well as funding solutions configured for more longer-term planning.
Part Three of the ‘Guide to Business Survival’ goes on to explore the restructuring and insolvency processes and explores ways of affording a business and its employees a future. The document explains each element of the insolvency regime and the differences between Company Voluntary Arrangements and Creditor Voluntary Liquidations, for example, through a series of helpful Questions and Answers.
In addition, there’s guidance throughout on how to negotiate with creditors and HMRC with both formal and informal ‘Time to Pay’ arrangements, and details on how to choose a broker to help better understand the myriad funding options now available to today’s businesses.
Focusing on the financials
Simon Plant, CEO of the SFP Group, appreciates that running a fire and security business can be tough, even when things are going well. “Companies can fail, not because they don’t have a great product or service, or even a full order book, but more often because they’ve spent too much time ‘doing the day job’ and not enough time focusing on the financials,” explained Plant.
“Throw in a global pandemic,” he continued, “and that challenge is taken to another level. The Government has responded quickly and decisively to help small businesses with a variety of employer and employee support programmes and funding packages, and also with tax breaks and payment holidays, but it has to be recognised that such support cannot go on indefinitely.”
On that note, Plant stated: “With the furlough scheme giving way to a Job Support Scheme, repayments of loans falling due and deferred payments no longer deferred, businesses are facing a series of ‘pinch points’ that will undoubtedly impact their cash flow and their future prospects.”
He concluded: “Our ‘Guide to Business Survival’ equips business owners with the information and steps they need to navigate their way through this current crisis, or how best to restructure their business with the help of a licensed insolvency practitioner.”
Throughout the new document, the SFP Group focuses on the positive actions a business and its directors can take to recover and return to profit. It also explores a director’s fiduciary responsibilities, especially so in an insolvency process, and spells out the financial and personal consequences of failing to act both quickly and responsibly.
Five security guarding businesses – Professional Event Security Limited, Passion Security Solutions Limited, T Class Security Limited, Fulwood Security Services Limited and Rapid Action Security Limited – have failed within the last few months alone. Similar company failures have also been reported among installers and manufacturers.
*Download the SFP Group’s Guide to Business Survival