Taking the plunge

17 November 2008

We are a relatively young business - our showroom in Cardiff opened in January 2007 - and while setting up a new business is hard at the best of times the current economic climate is making it even harder.

But you know what, I am still glad that I have taken the plunge.

I have what I call a little corner shop' with relatively low overheads and while the credit crunch is affecting my business it is also teaching me some valuable business lessons, and I feel that if I can survive the next year I will be in a strong position for the inevitable return of the market.

Your article 'Spare some change guv?' had, I think, a very valid point, in that for too long companies have relied on credit accounts with suppliers and if they can't pay one they will open up another, digging themselves into a deeper hole.

Don't get me wrong, I have accounts with suppliers but they are either with small limits or I choose to pre pay them, this way I know at the end of every month I'm not faced with accounts that have spiraled out of control. Yes, it's hard to manage with cash flow but as long as your customers pay on time it is achievable.

The one thing in this business I have found is that you must be careful with the amount of money in your bank account. If you have had a good run of sales or installations, it's very easy to get carried away and buy or lease that special new car you always wanted, or go on the exotic holiday but in actual fact most of the money is probably not yours to spend. How many times have we seen businesses go bust and the directors are driving flash new cars?

My belt is tight, very tight, and although foot flow has reduced there are still people out there who want to buy a new kitchen so I would suggest that we stop talking doom and gloom and start talking positive again, it's not just the media it's the reps as well, it's as if they get a buzz about talking about other peoples' misfortune, there have been some good honest people that have lost good businesses due to the economic climate and you have to feel for them.

You mention squirrels and nuts! I wish that I had been in business long enough to have some nuts put away but I haven't so I will just have to do it the old fashioned way sell kitchens at a reasonable margin and pay my bills preferably on time.

Martin Brown, md, Mobalpa Cardiff

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