YOU NEED TO About Small Garages Really Do Need The Banks 2232

Since the beginning 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 your small business for over thirty years and remember well the times of “milk and honey,” when the banks were throwing money around as if there was no tomorrow.

My own business background is that of a little garage owner in Halifax, West Yorkshire in the United Kingdom. Dealing with a mid-sized bank who always wanted blood from a stone. In the good old days I had to arrange a gathering with the branch manager, who was always a stereo type bank manager with a stiff upper lip no sense of humour. I had to give a very good reason to be able borrow money for just about any reason.

I would arrange a meeting and have to turn through to time and in my own 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 finish.

I usually got what I needed in the end and Perhaps the manager felt good about me and my business. The meeting always gave me chance to show off my enthusiasm for my garage and business generally. Bank managers in those times would also show interest in what the business enterprise was doing and would often call round for a chat or see how your latest bank funded project was going.

All this is resulting in the fact 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”, in our case a he became a she.

The problem came when on her behalf first stop by at my business, I presented her with my latest set of accounts and she cannot read them?. I did not embarrass her but this was a huge down size from the banks point of view, giving me no future confidence in the bank those years of mutual respect were impressed in a half hour meeting.

However minus the banks help or not we always believed that small businesses should grow at a small % “year on year,” and that theory has always put the business in good stead and gave my family and I a good quality lifestyle, 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 noticed that things were developing on the news that sort of leaked out by the finance institutions as to what was going to happen.

My staff were the first to be warned, I would advice them never to fall for the banks offering them 110% mortgages and easy money supplied for nothing, as things were likely to fail and the bubble would burst. Luckily most of my staff took notice of my advice and we all got through the crisis without trouble.

Eventually as the crisis began to take hold money supply began to run out. Many smaller businesses are run by very clever people, we have to be clever to survive and plans were made in my business to counteract the issues that may arise in the not too distant future.

The Bank Help My company had a normal staff meetings, to discuss the issues before they arrived. Firstly we became aware that the larger companies were not going to the stand by position and lose their business and so very quickly they started to undercut our customers to the extent that we could no longer compete on price and although we gave superior service to your clients, they still moved on because of price.

My only response to this is to release among my drivers, this saved me the profit I was going to lose in the next twelve months. Like millions of other small business owners I was on automatic pilot and reacting to the crisis every day 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 going to get much worse” and the banks were going to get much tighter within their lending to small enterprises and home loans. However the first problem to occur was that the bigger companies were starting never to pay there bills on time. The British government stated they would,”check out the matter with great urgency” but as usual nothing happened and many small businesses begun to close, especially individuals in manufacturing such as for example clothing, were it was difficult to manoeuvre, we were able to change our product range and also went more to internet selling, and we are now reaping the rewards of change.

Small business is definitely the backbone of the economy and flexibility has been the key word to the success of our survival, we can weave our through all of the obstacles and things thrown at us every day. Banks in my opinion are of great advantages to us all and although we have all heard frightening stories of what the banks have done, I must state that we’re able to not work without them and even though I’ve not had things my very own way, that my bank has been fair with my business interests, but I really do think that the standard of bank staff has deteriorated probably due to staff cut backs as a result of financial crisis, employing younger, cheaper more inexperienced personnel.

It has probably been my under-developed financial crises and as a great 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 whenever you can and not keep all of your” eggs in a single basket” act on your own one reactions, if you feel you should make changes, make them quickly do not hang around. Always keep your staff informed, they’re the ones that could make or break the business, inquire further for any ideas of how you can find through the crisis, you may be surprised at some of the good ideas that your staff will put forward.