Advice to Directors and Business Owners
By Vernon Dennis, Head of Business Recovery and Reconstruction at Howard Kennedy LLP
Support for business, support for workers. In these strange and unsettling times the Government's direct intervention is essential to save businesses, to save jobs and livelihoods, and arguably it is necessary to ensure the survival of our free market economy.
Governmental measures in the UK and across the globe have seen unprecedented loans and grant to businesses, the guaranteeing of employee wages, the suspension of tax collection and in certain areas measures to prevent creditors taking enforcement action. The speed of development is bewildering and has been described as akin to the nationalisation of the entire economy.
These steps and others may well alleviate an immediate cash flow crisis arising from the collapse of demand and/or inability to trade during the current crisis. However countless businesses face an existential crisis, with no revenue and no ability to predict when the revenue stream return is there any future? What can be done in such circumstances?
In this climate there is an absolute necessity to share information and good ideas. The normal market rules do not apply, one cannot assume that competitive advantage is best served at this point by keeping the best ideas to oneself. Commercial exploitation of the situation and unchecked Darwinian survival of the fitness will see an economic collapse. We are all in this together; and if help and support is provided across the business community we will endure.
Find out why leading brands in the private client industry are partnering with PCD to raise their profile, make connections and drive new business.
Find out how you can participate in the leading club for international private client advisors and unlock opportunities around the globe.