Portfolio: Business
like the dollar or euro in terms of status. hope – but the scale of potential impact recovery period must be sympathetically
Some sterling weakness is no bad thing is of substance. judged. Getting back on economic track
so far as our trading sectors are con- Finally, if anybody is brave enough will be no easy achievement.
cerned; and the inflationary impact of to be still with me in this tale of doom Over the coming months I very
sterling weakness is no cause for concern and gloom, there is the double-dip much hope to be proved right, in so far as
at present. But a real run on the pound risk. As stressed above, once recovery is seeing my four risk scenarios evaporate,
would be destabilising and deeply dam- under way, we face a period of tight fis- and wrong, in so far as seeing the outturn
aging. Perhaps the US and Eurozone cal policy and potentially, tight monetary more positive than I dare to anticipate in
countries would support sterling. Per- policy. If the recovery is not sufficiently my central case. But – rather like looking
haps an emergency entry into the euro entrenched when such tightening tran- forward to Scotland in the Six Nations –
for protection purposes would have to spires then a return to recession is pos- it is as well to hope for the best but to be
be considered. Again the risk is slight – I sible. Economic management over the prepared for the worst. HM
BEYONd THE HEadLINES
advIcE
S
mall business customers of the assist in any way.” More lowly staff appear to have no real-
FROM THE
Royal Bank of Scotland received a The 16-page booklet contains sec- world relationship with small business.
booklet last week called ‘Trading through tions headlined ‘Managing your cash- So tales abound of iniquitous charges
BaNkS
the economic downturn’. flow’, ‘Cashflow forecasts’, ‘Dealing with continuing to be applied. One small
“When economic conditions dete- bad debts’, Profit is sanity’ and ‘Spread business owner told Holyrood they were
riorate, small businesses are usually the your risk’. On cutting costs it advises: mystified by a £28 ‘maintenance charge’
most vulnerable,” wrote Paul Lynam, “Start with non-essential expenditure – frequently applied to their account. It
chief executive of Business Bank- then tackle fixed costs such as utilities, took the branch a while to decide that
ing at RBS. “They tend to have fewer stationery and other outgoings.” it was because funds to cover payments
resources, less capital and typically rely What’s galling for many small busi- were being paid in on the morning of
on a smaller number of customers than nesses, however, is that Royal Bank staff the day they were due, not before.
larger businesses. However, it is not usu- at branch level – and obviously it’s not The branch would not budge; the
ally lack of profitability that causes their just RBS staff – are wedded to their old funds had to be in the day before to
failure – it’s lack of cashflow. practices. These are not based on under- avoid the charge, even though the pay-
“We at the bank have been through standing and flexibility, they are based on ments had always been processed by the
many economic cycles before and so software; the computer tells them what bank without any apparent difficulty. It is
we know what small businesses can do they can and cannot do for their custom- this sort of practice that has been erod-
to prepare to meet the challenges they ers. The banks have neglected to rewrite ing the banking sector’s reputation since
may face. That is why I have asked some the software. The staff find it difficult, or before the economic crisis.
of our most experienced staff as well as are afraid, to demonstrate initiative. It would be interesting to hear what
outside experts to share their insights ‘Business relationship managers’, ‘Busi- advice Paul Lynam has given his staff;
and expertise with you in this booklet. ness account managers’; they are a misno- and indeed, how many have read his
“We are here to help. So please come mer. Many appear incapable or unwilling introduction to ‘Trading through the
and talk to my team if you feel we can to provide any constructive management. economic downturn’. HM
|
www.holyrood.com | Holyrood magazine | 15 December 2008 |
61
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80